Tag Archive for FSA

Committee Criticises Brown’s Bank Regulation Regime

June 2, 2009 Stewart Hosie MP No comments

Evidence stacking up against Culpability Brown

Gordon Brown faces damaging new criticism of the way banks were supervised by the Treasury, Bank of England and Financial Services Authority (FSA) following the publication today (Tuesday) of a report by the House of Lords Economic Affairs Committee.

SNP Treasury spokesperson, Stewart Hosie MP, said the report which said the so-called tripartite system had failed and must be reformed, added to the catalogue of failures by the prime minister in the lead up to the financial crisis, including:

- Brown ignored Treasury tripartite warnings in 2004.
- Admissions by the Financial Services Authority (FSA) Chairman, Lord Turner, that “the whole system was risky” and “they didn’t focus enough”
- The Bank of England’s Financial Stability Report 2007 which shows the UK Government and the Bank wilfully ignored warnings in the run up to the crisis
- Evidence from the FSA that Brown put political pressure on them not to question banks on risky practices
- The resignation of Sir James Crosby – one of the Prime Minister’s key advisors – followed revelations that when he was chief executive of bank HBOS he sacked a whistleblower who warned that banks were heading for disaster.

Commenting on the Lords report, Mr Hosie said:

“With every new report and revelation it is clear that the trail of responsibility for the banking crisis leads direct to Gordon Brown’s door. It is looking increasingly like the financial mess started in Downing Street, and not in America as the Prime Minister keeps protesting.

“The Lords report echoes criticism by the National Audit Office inquiry which found that the tripartite regulatory structure created by Gordon Brown was seriously flawed, and that Treasury officials decided it was not a priority to fix it.

“We have had allegations that Gordon Brown pressured City watchdogs into not questioning the banks’ risky practices and exerted political pressure, and now we have a Lords committee criticising the way banks were supervised.

“The evidence is stacking up against Culpability Brown.

“Until recently the main charge against Gordon Brown was his role as Chancellor in the decade when many of the cracks in the financial sector developed. But the evidence stacking up over recent weeks casts real doubt over his government’s responsibility for the financial crisis.

“With the European election on Thursday it is the SNP in Scotland who are working to protect Scotland’s jobs and communities from the impact of Brown’s economic failures.”

SNP ON DUNFERMLINE DEAL – JOBS CLARITY ESSENTIAL

March 30, 2009 Stewart Hosie MP No comments

BROWN LETS DOWN LOCAL BUILDING SOCIETY

Commenting on the sale of the Dunfermline Building Society to the Nationwide SNP Treasury spokesperson Stewart Hosie MP, said:

“With the Chairman of Dunfermline branding this deal a “sacrifice” there are serious questions over how the society has been treated by the Treasury and the Financial Services Authority.

“That the Dunfermline is being sold to a building society is welcome – but there remain fundamental concerns over the way this deal has been brokered and if it was necessary at all.

“Their determination to push for a sale of the society and the spin and leaks over the last week are reminiscent of the way the Treasury behaved over HBOS and Lloyds.

“The Dunfermline’s accusation that the Treasury and FSA offered them little more than tea and sympathy adds ever more evidence to the catalogue of failures by the UK Government.”

SNP MSP for Central Fife Tricia Marwick said:

“We must have clarity on the jobs guarantee. Nationwide have said all staff will transfer – but the Scottish Secretary has now said HQ jobs are not secure. For workers in Dunfermline and across Fife there is a need for this to be clarified.

“While Gordon Brown has been jetting around the world, the building society on his doorstep has been let down by his government.

“The Treasury’s refusal to offer a loan has seen the Dunfermline
“sacrificed”.

“The UK Government have split up and sold off the Dunfermline – handing over the strong elements of the society lock, stock and barrel to Nationwide.

“The Dunfermline has a long, independent history as a mutual and has played a major role in Fife society. That must not be lost.”

SECURE FUTURE NEEDED FOR DUNFERMLINE SAVERS

March 23, 2009 Stewart Hosie MP No comments

Commenting on the range of reports covering the future of the Dunfermline Building Society SNP Treasury spokesman, Stewart Hosie MP, said:

“At present the focus on the Dunfermline’s finances are largely speculation and we must remember that as we await full facts from the society in the coming weeks.

“The importance of the Dunfermline remaining as an independent financial institution is underlined by its major contribution to social housing provision and employment in Scotland. The Dunfermline is clearly also home to the savings and mortgages of many people in Scotland.

“Reports that the Treasury and FSA knew of problems at Dunfermline some time ago and refused to offer assistance are seriously disturbing, and add to the catalogue of failures that are mounting up against the UK government. I sincerely hope these reports do not turn out to be true.

“Our priority must be securing the Dunfermline’s independent financial status, and protecting its customers and their savings. If the society is facing difficulties it must be given all the support it needs.”

KERR’S BOOMERANG HITS PM

March 18, 2009 Stewart Hosie MP No comments

CULPABILITY BROWN’S CALL FOR LIMITING REGULATION EXPOSED

SNP Treasury spokesperson, Stewart Hosie MP, has ridiculed an attack on the First Minister by Scottish Labour finance spokesperson Andy Kerr as a boomerang attack which only highlights the evidence that responsibility for the financial crisis and regulatory failures leads directly back to Downing Street.

Mr Hosie said:

“While the real world is focussed on improving our economy Andy Kerr’s playground politics only highlight how Gordon Brown was responsible for the failed financial regulatory regime. A regime he wanted to limit and even pondered whether regulation should be in place at all.

“The evidence over who is responsible for the economic crisis, and the regulatory failures which contributed to it, all leads directly back to Downing Street. The failure of regulation was ‘made in Downing Street’ – numbers 10 and 11.

“Last week evidence from the FSA chairman, Lord Turner, suggested that Gordon Brown pressured City watchdogs into not questioning the banks’ risky practices.

“We have also heard revelations that one of the prime ministers key advisors, Sir James Crosby, sacked a whistleblower who warned that banks were heading for disaster. That followed revelations about how Downing Street failed to take adequate action in time concerning Iceland’s banks when he was given warnings months in advance.

“And if that was not enough, there are no shortage of commitments by the prime minister to put in place ‘limited regulation’, indeed, Gordon Brown even pondered whether there should be any regulation at all.

“We cannot continue with a system that allowed obvoius problems to pass unnoticed. The FSAs suggestions deserve consideration and a thorough examination – not a political boomerang.

“No doubt Gordon Brown will be pleased that Andy Kerr’s leadership bid failed, given his spectacular ability launch such an embarrassing boomerang attack.”

HOSIE DEMANDS RBS ‘POLITICAL’ ANSWERS

March 12, 2009 Stewart Hosie MP No comments

CUSTOMERS VETTED FOR POLITICAL BELIEFS FOLLOWING TREASURY TAKEOVER

SNP Treasury spokesperson, Stewart Hosie MP, has demanded answers from RBS chief executive Stephen Hester over reports that RBS call centres were politically vetting business customers following the UK Government’s part-nationalisation of the bank.

Customers using RBS Streamline – a service by which retailers and other others can offer credit/debit card facilities – are apparently being asked about their political affiliation and whether they know any elected politicians. In one instance it was claimed the Financial Services Authority had requested the inclusion of the question.

Mr Hosie said:

“It is outrageous and totally unacceptable that customers are being asked for details of their political affiliations and contacts.

“What possible relevance could this information have in terms of the provision of bank services.

“It is especially questionable that this line of questioning was only introduced following the UK Government part-nationalisation of the bank.

“Stephen Hester must explain why this line of questioning was introduced, and who instigated it.

”I want some political answers of my own, such as whether any political pressure was applied by UK Government Ministers for such vetting.”

SNP MP COMMENTS ON SECRET HBOS PAPERS

March 2, 2009 Stewart Hosie MP No comments

Commenting on the report in toady’s Observer concerning documents used during the recent court case against the Lloyds/HBOS merger, SNP Treasury spokesman Stewart Hosie MP said;

“The UK Government’s involvement in the Lloyds takeover has long aroused concern.

“For the dossiers used to convince the courts to be kept secret only adds to the suspicion that Gordon Brown and Alistair Darling have something to hide.

“That questions have been raised about the documents still even existing is equally concerning.

“That they are pursuing those who fought to protect shareholders from the bad debts and bad deal that has emerged for court costs is simply ridiculous.

“The clear evidence from the FSA that there was an alternative and that the banks could have been supported as two separate entities – instead of merging their problems into one giant bad bank – throws even more doubt on Government claims it was the only option.”

‘CULPABILITY BROWN’ IN DENIAL ABOUT RESPONSIBILITY FOR DOWNTURN

March 2, 2009 Stewart Hosie MP No comments

SNP LIST EVIDENCE ON BROWN’S ROLE IN FINANCIAL CRISIS

Commenting on Gordon Brown’s speech today about the regulation of the financial industry SNP Treasury Spokesperson, Stewart Hosie MP said the Prime Minister was in denial about his own responsibility for overseeing the system of regulation that led to the crisis.

Mr Hosie listed the growing evidence which linked the Prime Minister to the lax system that led to the crisis which has revealed:

* Admissions by the Financial Services Authority (FSA) Chairman, Lord Turner, that “the whole system was risky” and “they didn’t focus enough”

* The Bank of England’s Financial Stability Report 2007 which shows the UK Government and the Bank wilfully ignored warnings in the run up to the crisis

* Evidence from the FSA that Brown put political pressure on them not to question banks on risky practices

* The resignation of Sir James Crosby – one of the Prime Minister’s key advisors – followed revelations that when he was chief executive of bank HBOS he sacked a whistleblower who warned that banks were heading for disaster

“That the Prime Minister knew about Icelandic banks months before the UK Government took any action – and which is now seen as being so heavy handed it precipitated an even more rapid collapse.

Commenting, Mr Hosie said:

“Gordon Brown is in total denial about his own culpability for this crisis. He is responsible for setting up the failed tripartite regulation system, he has borrowed beyond the UK’s means and he even appointed advisors like Sir James Crosby and Fred Goodwin.

“His words ring hollow if he wants people punished. What punishment does he think he deserves?

“Under Mr Brown’s watch the FSA, the Bank of England and the London Treasury disregarded the fatal flaws in the banking system.

“However much he spins the fact remains that the buck stopped with Gordon Brown and he is as culpable for the crisis we find ourselves in as anyone else. The evidence is overwhelming and no amount of denial can hide that.

“This whole fiasco is typified by a failure to respond responsibly to risk. The blame lies squarely at the door of 10 Downing Street – and with Culpability Brown.”

‘CULPABILITY BROWN ‘ PRESSURED FSA NOT TO QUESTION BANKS’ RISKY PRACTICES

February 27, 2009 Stewart Hosie MP No comments

SNP MP QUESTIONS £21 MILLION BONUSES FOR FSA

Evidence from the Financial Services Authority (FSA) chairman Lord Turner that Gordon Brown pressured City watchdogs into not questioning the banks’ risky practices has been described by SNP Treasury spokesperson Stewart Hosie MP as further proof that the trail of responsibility for the banking crisis leads direct to Downing Street.

Mr Hosie said:

“Lord Turner’s testimony is devastating proof that the trail of responsibility for the banking crisis leads direct to Gordon Brown’s door. It is looking increasingly like the financial crisis started in Downing Street, and not in America as the Prime Minister keeps protesting.

“Allegations that Gordon Brown pressured City watchdogs into not questioning the banks’ risky practices and exerted political pressure, are absolute dynamite.

“The evidence is stacking up against Culpability Brown.

“Just last week we learnt that one of his key advisors, Sir James Crosby, sacked a whistleblower who warned that banks were heading for disaster. And that followed revelations about how Downing Street failed to take adequate action in time concerning Iceland’s banks when he was given warnings months in advance.

“Until recently the main charge against Gordon Brown was his role as Chancellor in the decade when many of the cracks in the financial sector developed. But the evidence stacking up over recent weeks casts real doubt over his government’s responsibility for the financial crisis.”

Mr Hosie also questioned reports that staff at the FSA are to share in £21 million of bonuses.

Mr Hosie added:

“With public anger over banking bonuses and pensions growing this will just add to that feeling. Many people will be asking why the FSA deserve bonuses at a time the industry they were regulating is now going through huge changes.”

SNP MP COMMENTS ON REPOSSESSION FIGURES

February 21, 2009 Stewart Hosie MP No comments

SALE AND RENT BACK RULES MUST NOW BE PRIORITISED

Today’s repossession figures highlight the need for the UK Government to act on regulating the housing’s sale and rent back market says the SNP Treasury spokesperson Stewart Hosie MP.

The Office of Fair Trading recently completed a 6 month investigation in to the market and called for such regulation by the Financial Services Authority.

Mr Hosie said:

“Although the number of repossessions are fewer than had been predicted, there is no doubt that these figures are of great concern.

“These are not just statistics, but peoples homes and lives, and so the urgency of reducing the risk of repossession in the current economic climate is all the more stark.

”I am pleased that the Scottish Government have given this situation such priority and has already increased funding for the Home Owners Support Fund to help those who cannot access support anywhere else to stay in their homes through the Mortgage to Rent and Mortgage to Shared Equity schemes.

“More and more people will be turning to sale and rent back to stay in their homes and avoid repossession.

“It is therefore vital, to stop people being ripped off or put out of their homes, that this market is regulated as soon as possible.

“The UK Government response has been disappointing to date. Regulating sale and rent back would protect people who are vulnerable now. The process must be fast tracked.

“It is simply unacceptable that vulnerable home owners should be left at risk by the UK Government when the OFT have already set out the solution.”

CULPABILITY BROWN’S TRIPARTITE SYSTEM IN MELTDOWN

February 17, 2009 Stewart Hosie MP No comments
BANK OF ENGLAND CHOSE TO GLOSS OVER RISK

BANK OF ENGLAND CHOSE TO GLOSS OVER RISK

SNP Treasury Spokesperson, Stewart Hosie MP said the was “no escape” for Gordon Brown as yet more evidence piled up to suggest he is responsible for the current crisis in the banking sector.

Following admissions by Financial Services Authority (FSA) Chairman, Lord Turner, that “the whole system was risky” and “they didn’t focus enough”, Stewart Hosie has pointed to the Bank of England’s Financial Stability Report 2007 which shows the UK Government and the Bank also wilfully ignored warnings in the run up to the crisis which led to the current recession.

Commenting, Mr Hosie said:

“It wasn’t only the FSA who disregarded the fatal flaws in the banking system, the Bank of England and the London Treasury wilfully ignored their own assessments, too.

“These organisations constitute the tripartite system set up by Gordon Brown. So once again, as the failure of this regime is coming to light, there is no escape for the Prime Minister.

“The Bank of England’s 2007 Financial Stability Report, the last one before the run on Northern Rock and the full blown banking crisis, acknowledged both weaknesses and vulnerabilities including weakened credit risk assessment, impaired risk monitoring, and impaired market liquidity. But it glossed over the dangers when it said, ‘the UK financial system remains highly resilient’ and that ‘financial innovation and the growing use of credit risk transfer markets have increased the risk-bearing capacity of the system’.

“So while the Bank of England stated that its focus was on ‘assessing threats to the financial system as a whole’- something it patently failed to do – Lord Turner has conceded that the FSA failed to spot the ‘large systemic risk’ in the banking system.”

Mr Hosie’s comments came amid reports revealing the UK Government’s action plan to bail out the economy is in chaos with the CBI predicting the UK Government will have to borrow more than an additional £100bn to help the UK economy through the recession.

Mr Hosie added:

“This whole fiasco is typified by a failure to respond responsibly to risk. The blame lies squarely at the door of 10 Downing Street – and with Culpability Brown.”

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