Darling: I won't reform the system
Wednesday, 17 June 2009 12:00 AM
By politics.co.uk staff
Alistair Darling has refused to reform Britain's tripartite regulatory system, arguing it was not responsible for the credit crunch.
Instead, the chancellor said, financial bosses were to blame for the downturn.
The system, which was criticised by the Treasury select committee last month, is constituted by the Financial Services Authority (FSA), the Treasury and the Bank of England.
Mr Darling did admit that regulation needs to be improved.
"It needs to be more intrusive and needs to ask harder questions," he told the BBC.
But bankers and bosses had to take most of the blame, he insisted.
"Too many people did not understand the risks to which they were being exposed," he continued.
"You've got to make sure you've got the right people there to make the right judgments."
The chancellor will be giving a speech at his annual Mansion House appearance later today.
"Having stabilised the banking sector, we are faced with the challenge of building a stronger, more efficient and more resilient financial sector in the future," he will say.
"Anyone who thinks that we can carry on as if nothing has happened should think again. In every country we are paying a huge price for this crisis. Not just the financial cost but also a profound social and human cost.
He will continue: "I strongly believe that the process of learning lessons has to start in the boardroom. Bank boards must have the right people, skills and experience to manage themselves effectively. their focus must be long-term wealth creation, not short-term profits."
A paper on banking reform will be published within the fortnight.
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