UK Parliament Report on FSA Supervision of Banks (with Lofchie Comment)

The Treasury Committee has published its report on the failure of the FSA's oversight of RBS. The report describes the relevant events as being a "serious indictment" of the regulator. In addition to this critique of the FSA, the Treasury Committee has commented in its report that:

• New Prudential Regulation Authority should be empowered to approve major bank mergers and acquisitions; and
• Legislation currently being considered on banking reform deserves greater scrutiny.

Lofchie Comment: Many of the issues raised in the report have parallels in U.S. regulation. I also note that, in yesterday's news, there were a good number of articles relating to the redo of the U.K. bank regulatory system. This report will play into the debate over the restructuring of the system.