FSA wants to run the market rather than be a regulator
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It seems to me that the FSA is going well beyond it’s remit as a regulator in its latest paper on the Mortgage Market Review.
Rather than regulate the mortgage market it seems to want to run it, making decisions that would be best left to those who operate in it.
On what basis does the regulator justify this interference with lending policy? I don’t believe this was the intention when it was established.
There’s too much power in the hands of an unaccountable body which lacks hands-on experience of the industry and the professionals it regulates.
Its employees are trying to cling on to their jobs by looking busy. Time to say goodbye, FSA.
BOB BULL
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Readers' comments (2)
Mark | 20 Jul 2010 6:02 pm
Didn't you notice the financial crisis? This kind of simplistic "market always knows best" philosophy is not very convincing anymore (not that it ever was to some).
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Anonymous | 21 Jul 2010 11:26 am
MArk you make a valid point, as does Bob. The market got out of control previously, for which everybody needs to accept some responsibility. The lenders were happy as they were able to sell on the loan books with ease, customers were happy as they were able to use their houses like a piggy bank, the government were happy as the housing boom funded billion and billions of pounds of spending bringing in massive amounts of revenue, and the FSA were happy as it seemed like a neverending rising market which they were more than happy to preside over and take the credit for. When it all came crashing down the results were catastrophic. Now the FSA choose to intervene but how can they dictate to lenders how to lend? Guidelines are required, not a dictatorship. Lessons have been learnt from the mistakes so why can we not allow the market to find its new level. To take massive amounts of people out of the mortgage market is not going to assist any recovery, in fact the opposite will be true.
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