“…Wasn’t financial regulation supposed to have turned over a new leaf?
With phrases like “proactive”, “intrusive” and “harsh” -
- taking over from “light touch” and “risk based”.
That is certainly what the Financial Services Authority would have us believe.
Talking tough has been the name of the game in recent months.
The FSA’s outgoing boss, Hector Sants, even suggested that banks should feel “frightened” of the watchdog.
If events at JP Morgan are anything to go by that fear is about the same as what you might expect to feel from watching a Walt Disney cartoon in the middle of the day with all the lights turned on.
And a teddy bear at the ready.
Like most banks JP Morgan has griped about the FSA’s new regulatory landscape.
But then banks are pre-programmed to complain vociferously about any increase in regulation -
- however small that increase might be.
Turkeys don’t vote for Christmas.
The question that needs to be asked is whether the FSA’s talk resulted in any real action.
The JPMorgan affair doesn’t suggest an answer we should be comfortable with…”
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