BANKING REGULATION WAS “SOFT TOUCH” SAYS JOHN McFALL

BANKING REGULATION WAS “SOFT TOUCH” SAYS JOHN McFALL

“FSA WERE DEFICIENT IN PRUDENTIAL REGULATION”

CULPABILITY BROWN CANNOT ESCAPE RESPONSIBILITY FOR REGULATION REGIME

Commenting after the appearance of the chairman of the House of Commons Treasury Committee, John McFall, at the Economy, Energy and Tourism Committee today where he said that the banking regulation system just before the crisis was “soft touch” and that the “FSA were deficient in prudential regulation”, SNP committee member Rob Gibson said:

“Mr McFall is a senior Labour MP and a respected chairman of the House of Commons committee. His remarks on the regulation regime just before the crisis are a damning indictment of the tripartite regulation regime Gordon Brown set up.

“We have already learnt how Gordon Brown’s tripartite regime had failed and these remarks add to that and we have a trail of headlines showing his culpability in the regulation regime that led up to the financial crisis.

“With every new report and revelation it is clear that the trail of responsibility for the banking crisis leads direct to Gordon Brown’s door. It is looking increasingly like the financial mess started in Downing Street.

“The tripartite regulatory structure created by Gordon Brown was seriously flawed, and the evidence is stacking up against Culpability Brown."