FSA boss resigns
By politics.co.uk staff
The chief executive of the Financial Services Authority (FSA), Hector Sants, has resigned.
He headed the regulator during probably the most dramatic and crucial period of its history, as the financial crisis – and the regulator’s inability to foresee it – led many to criticise those in control when the downturn struck.
In a statement Mr Sants confirmed he was leaving after three years, as planned, and would depart in the summer.
“I am very proud of the manner in which the FSA rose to the challenge of dealing with such unprecedented turbulence across global financial markets,” Mr Sants said.
“Moreover, I believe the FSA candidly examined the failings in financial regulation that contributed to the onset of the crisis, learned the lessons and has gone on to reform itself into a much stronger and better equipped organisation.”
The Liberal Democrats warned the resignation could destablise the already-beleagured regulator.
Lib Dem Treasury spokesman Vince Cable said: “We are still in the middle of a crisis and the FSA has an important part to play in effecting far reaching and lasting change.
“There were failures in the past but the resignation of Hector Sants will plunge the FSA into a great deal of uncertainty.
“We don’t know if this decision is a direct result of the Tories’ stance on the FSA’s future but what we can say is that their proposals are creating uncertainty for an organisation that has a vital role to play.”
The Tories plan to break up the FSA if they win the general election.
Critics say the FSA should have prevented the build up of liabilities at risk-taking banks before the crisis finally hit.
