Adair Turner, chairman of the UK’s Financial Services Authority, spoke to Lionel Barber, editor of the Financial Times about the roots of the financial crisis and the future of regulation. Below is a transcript of the interview on December 8.

Lionel Barber: Lord Turner, the City of London has long prided itself on its light touch regulation, now a lot of people are talking about a heavier touch, more supervision, more intrusive regulation. Isn’t there a danger of over-reaction?