UK financial services watchdog proposes shakeup

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Source: CCTV.com | 03-19-2009 09:14

Britain's financial services watchdog has proposed sweeping changes to global banking regulations.

The moves would include a crackdown on the "shadow banking" activities of various institutions, including hedge funds.

The Chairman of Britain's Financial Services Authority, Adair Turner, poses for photographers before delivering his report into the global banking crisis, London March 18, 2009.REUTERS/Andrew Winning

The government-commissioned banking services report recommends new rules on a variety of issues.

They range from increased requirements on banks regarding holding capital to stricter controls on bankers' bonuses to discourage excessive risk taking.

Financial Services Authority chairman Adair Turner says the market economy remains the best means of delivering global prosperity. But he also says major changes in regulation and supervision are necessary.

Adair Turner, Chairman, UK Financial Services Authority, said, "It was that there was a very strong belief, strongly argued by a lot of clever people that the development of this whole system of securitised credit had made the world safer and more stable and it turned out to be very big intellectual mistake."