Tim Hutchings, Chief Executive of the Hertfordshire Chamber of Commerce & Industry today spoke about the UK's Credit Crunch and the FSA.
"Much has been said about the impact of the so called “credit crunch” which by my crude analysis has been caused principally by the banks lending money too freely to people who could not afford it. They then compounded their errors by buying the debts of the US sub-prime market. Great business I don’t think.
Where was the Financial Services Authority while all this was going on? “Up stairs collecting fares” one supposes.
Clearly none of us will benefit from further banking collapses so it is therefore right and proper that our government and the Bank of England act to reintroduce stability into the banking system but at the same time they must act to ensure that nothing like it happens again.
A good starting point would be to completely overhaul the FSA enabling to have genuine independence from the banking sector and by giving it sufficient teeth to ensure the future integrity of the sector."