Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

James Moore: Scaring the children – or the City – is not helpful

James Moore
Tuesday 24 April 2012 22:55 BST
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

Outlook City regulators should be what parents who work in the City of London frighten their children with before the nanny puts them to bed, at least in the view of Hector Sants, who gave his final speech as the chief executive of the Financial Services Authority yesterday before moving to the Bank of England.

"People should be very frightened of the Financial Services Authority," he said. Presumably he wants the same to be true of its successors.

That sort of statement tends to upset people, prompting City folk to talk about jackboots and bully boys while muttering about moves to sunnier climes where regulators sit down to G&Ts with bank bosses after work.

It is fair to say that the statement is hardly constructive. Creating an atmosphere in which those who work in London's financial centre have a healthy respect for watchdog might be more sensible.

But respect really has to be earned and Mr Sants says senior bankers are still too focused on earning money to do that.

In fact, he says, it is frequently the case that individuals put up for top jobs do little due diligence, lack proper understanding of the risks and challenges facing their prospective employers, and are motivated by a cloying sense of entitlement.

The sad thing is that his words won't come as any great surprise. They will merely confirm what most people already felt was the case.

Beyond a plea for better behaviour, Mr Sants' speech was rather light on ideas for effecting change. In fact, if the Co-op is ultimately barred from taking over the 600-plus branches that Lloyds has to sell, the watchdog may actually be open to charges that it is reinforcing the existing order.

Mr Sants called upon banks and bankers to be motivated not so much by money as by a desire to do the right thing. Which suggests he hasn't studied the history of the Square Mile very closely.

The trouble is that what he seems to be saying is that the world would be a much better place if people just took it upon themselves to behave a bit better. If only it were so easy.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in