From The BBC:
Lord Turner said that by 2004 “the whole system was risky”
The head of the Financial Services Authority (FSA) has admitted that the watchdog did not focus enough on the excessive risks being taken by banks.
“We didn’t focus enough on that,” Lord Turner said on the BBC’s Andrew Marr Show, referring to the fact that by 2004 “the whole system was risky”.
He stressed that other regulators around the world had also failed to notice the problem.
Lord Turner took over as chairman of the City watchdog in September 2008.
His deputy, Sir James Crosby, resigned from his position last week, following criticism of decisions he had taken when he was chief executive of HBOS.
‘All too risky’
There was also criticism of the decision to appoint Sir James to his job at the FSA, when the watchdog had previously warned about problems with the risk regime he had set up at HBOS.
Lord Turner stressed that the decision to appoint him had be…