FSA chief: Too costly to prevent all financial malpractice

FSA chairman Lord Adair Turner said the regulator is reviewing its approach to supervision following the LIBOR scandal, but said it would cost too much to prevent all malpractice in the industry.

In a speech given to Bloomberg entitled ‘Banking at the Cross-Roads’, Turner (pictured) addressed the recent scandals in the banking sector, and said the City watchdog has been questioning whether its traditional approach to supervision is still tenable. “In the past, it is fair to say the FSA did tend to assume that relationships in wholesale markets should be governed largely by a caveat emptor, market discipline approach. "But increasingly we are aware that at the end of the chain of wholesale institutional relationships there will typically lie a retail consumer. And that shoddy w...