The Financial Services Authority was accused last night by one of its former supervisors of complacency in its past regulation of building societies.
The unnamed whistleblower, who approached Vince Cable, the Liberal Democrats Treasury spokesman, said that the FSA ignored a warning three years ago that risky self-certified loans had been packaged and sold to building societies that thought they were conventional loans.
Mr Cable has written to Lord Turner of Ecchinswell, the FSA chairman, asking him to investigate. “This man experienced first hand the appallingly bad job the FSA did of supervising the building societies,” Mr Cable told The Times last night. The accusations come days after Moody’s, the credit ratings agency, downgraded nine of Britain’s biggest building societies.
See full Article.
Posts
