The Turner Report, which outlines the UK’s regulatory response to the global banking crisis, is a measured and valuable response to recent events. In particular, the recognition of the limits of the Financial Services Authority (FSA) as an individual regulator and the need for international consensus will be welcomed by the City.
The real surprise is in the FSA’s willingness to give up powers to Europe. This would have been unthinkable a year ago, and is a politically brave recognition of the need for international solutions to international problems. However, the devil will be in the detail of negotiating how far real powers will be ceded to Europe.
