Beware, unrepentant bankers resurgent: demands, warnings and threats
Strip the Financial Conduct Authority of its power to set penalties and redress for misconduct
The FT reports on this call made by former banking regulator Sir Hector Sants, who was chief executive of the Financial Services Authority from 2007 to 2012 and now works for multinational consultants Oliver Wyman.
It was made in a report written for the British Banking Association – after the FCA recently increased the size of its bank fines — closing the gap with the US.
Chairman of Barclays: policymakers should stop undermining the financial services industry and start promoting it
After being ‘undermined’ by an offer of a rescue package totalling some £500 billion, bankers kept a low profile. Now, John McFarlane, Chairman, Barclays Bank, in his capacity as chairman of the CityUK lobby group, is rallying and even taking politicians to task.
TheCityUK, a lobbying group, represents the UK-based financial and related professional services industry, producing evidence of its importance to the wider national economy. It is said to be heavily financed by the City of London Corporation, and its Overseas Promotion Committee is the sector advisory group to UK Trade & Industry (UKTI), which has formally outsourced to it the role of promoting the sector overseas.
A new surcharge on bank profits to be introduced next year and existing levies on big lenders pose longer-term threats he said, in his inaugural speech at’pl the group’s annual Mansion House dinner on Wednesday, Reuter reports. He added that it was time to revive the informal links between key policymakers and top financiers to “help advance the interests of the City of London . . . with the chancellor and the Bank of England governor and some key people to quietly strategise”.
How could banking lobbies and politicians possibly get closer?
Unless even closer links are forged between key policymakers and top financiers, Mr McFarlane – already aware of Citigroup and Credit Suisse moving some operations out of Britain – saw Ireland as becoming a credible alternative alongside New York and Singapore.
However, formal links with The CityUK are already stronger than some would wish: on the organisation’s advisory board and various committees and working groups are members of the House of Lords, regulators, senior civil servants, representatives of the Financial Services Authority which regulates the industry and personnel from the Treasury and Department of Business, Innovation and Skills.