Pressure has been mounting from a number of financial institutions since the run on the bank – the first in the UK for 140 years – for a thorough investigation into how the Tripartite Standing Committee handled the crisis, and the lessons to be learned.
Mark Sismey-Durrant, chief executive of Heritable Bank, believed the regulatory framework had failed. “The regulatory tradition was about safeguarding the security of customers and the banking system. The three bodies were trying to make a decision in a crisis situation and just didn’t get it right.”
Simon Biddle, head of marketing and communications at Infinity Mortgages, called for one party to take sole charge.
“The Tripartite failed and immediate reform is needed so that one party has overall control. It may have been a perfect storm but when the dust settles, it will become clear that under a more robust system, headed by the FSA, the queues outside branches might have been avoided.”
The chairman of the FSA, Sir Callum McCarthy, insisted that there would be no knee-jerk changes to the regulatory environment.
Speaking at the Institute of International Finance, McCarthy said: “We must not succumb to pressure for new regulatory initiatives to demonstrate that we are taking action. It is hard to think of an example where a rush to regulate has not caused more problems than it has solved.”
However, an FSA spokesperson said: “The three institutions have been working closely together throughout recent events and continue to do so. Clearly, following recent events, the authorities will be looking to see what lessons can be learnt.”
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