Queen Asks if Bank and FSA Complacent

Queen Asks if Bank and FSA Complacent.

In a visit to the Bank of England yesterday, where the Queen toured the vaults and viewed the UK Gold Reserves, it was suggested that the Queen questioned officials on the Bank of England’s and the UK Regulator, the Financial Services Authority’s (FSA) handling of the financial crisis.

Reports on television suggest that the Queen asked if “complacency” has played its part and raised the fact that the FSA “did not have teeth”.

Our view
The Queen is clearly thinking the same as many British Citizens.  

It is impossible for us to think that Banks could see not see that lending up to 9 times income multiples on toxic mortgages or in the case of Northern Rock offering 125% loan to value mortgages could not end on tears.  

Neither can it ever make sense that “self-certification” mortgages, where you simply signed to confirm that you could afford a mortgage or that your income was £X without any proof needed was sensible or in the public good.

Most people are hardworking, but we are all greedy.  For some, it can be hard to get on the property ladder without extending how much we can borrow, particularly in high property cost areas such London.  Banks and regulators have a duty to protect people from themselves.  They clearly did not and in the case of the regulator, it failed on its legal duty to protect the consumer.