Recession watch

Regulation

FSA review

It is essentially a forensic analysis of what went wrong in the banking system in the last decade and rubbishes many of the ideas that dominated, or stifled, debate during that time. Lord Turner, FSA Chairman, calls for a European super regulator, an idea that the UK has resisted for many years to prevent any undermining of Britain's position as a hub for financial services and the creation of a new European institution bringing together three existing committees to act as a standard setter and coordinator of supervision. At the same time, he called for stronger national powers to restrict the growth of retail deposit-taking branches.

http://www.fsa.gov.uk/pubs/other/turner_review.pdf  

Aggressive regulation required

A fairly radical view of what went wrong and what should be done.  An excellent piece by the LSE’s Robert Wade on the current financial crisis, which he sees as rooted not just in financial deregulation but also an out of control financial sector. He puts forward a fairly concrete agenda for reigning in global finance through actions at the international and national level, including capital controls and establishment of a layer of publicly owned banks.

http://www.challengemagazine.com/extra/023_054.pdf

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