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A scandal long overdue to happen

Two days ago I posted an update to my earlier mentions of
Political pressure on the FSA regulators

More political interference with the UK FSA is now emerging.
The Mail Online has a story which is going to be on the front page
of many of today's papers hitting the streets about now.

Sir James Crosby is the current deputy chairman of the Financial
Services Authority and one of the Prime Minister's favourite
private sector advisers, he was Chief Executive of the Halifax
from 2001 to 2006 and not only encouraged risk taking but is
accused in the above article of gagging people whose job it was
to raise legitimate concerns.

In 1999 the USA abolished the Glass-Steagall Act, allowing
retail banks to borrow. The Blair/Brown government followed
suit, allowing British retail banks to begin borrowing in 2001.

Then in February, 2002 Sir Howard Davies who had constantly
irritated his political masters by warning of the over-heating
of the UK mortgage market warns of a "A scandal waiting to
" in the CDO/CDS business which was financing it all.

The dysfunction at the FSA seems to me to have become much worse
at the point that Sir Howard Davies was moved out of the job and
two yes men were moved in.

The buck stops with the politicians who choose the regulators.
So Blair and Brown seem to me to be the people who should be
apologising before the house committee, but that's not going to

Meantime it seems to me we need past and present FSA knights to
answer some more serious questions...

Sir Howard Davies
Sir Callum McCarthy
Sir James Crosby

and of course the king's man now appointed to put it together

Lord Turner

Any more of Humpty Dumpty's knights we should take a closer look

"The question is," said Humpty Dumpty, "which is to be master -
that's all."

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