The City watchdog on Wednesday announced a sweeping overhaul of the UK’s financial regulatory regime, marking a definitive break with its previous “light-touch” approach and attempting to set a new global standard for the post-crisis world.
Lord Turner, chairman of the Financial Services Authority, set out plans to curb banks’ ability to take excessive risks by forcing them to hold more capital and increase their holdings of liquid assets and cash. He pledged to scrutinise any institution that could threaten the stability of the financial system.
