From The BBC:
“Radical change” is needed in the financial sector in order to restore public trust, according to the head of the City watchdog.Banks must focus on their “essential social and economic functions”, the Financial Services Authority (FSA) head Lord Turner said on Tuesday night. He also told the BBC the FSA had got regulations on the amount of money banks keep in reserve “quite wrong”. Excessive risk taking by banks was seen as a factor in the economic downturn. Banks must focus on restoring the public’s trust in their role, despite signs of economic improvement, Lord Turner said. He argued that the industry should consider carefully any business that fell outside its core roles, saying that bank bosses should walk away from activities that had no “social benefit”. Lord Turner told the BBC that banks should “rededicate and commit themselves” to their traditional role of deposit-taking and lending to individuals and businesses.
He said they “had fooled themselves into thinking that continu…
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