Post date: Dec 13, 2010 7:4:29 PM
The UK financial watchdog's CEO Hector Sants is reluctant to go ahead with rules on banks' capital requirements without support from other G20 members, but he says the FSA is prioritising the European crisis.
UK-FSA/HECTOR SANT - The UK's unlikely to go it alone in slapping extra capital requirements on big banks.
But Britain, the U.S. and Switzerland are pushing for the G20 to agree that big firms should hold extra money to stabilise the markets.
That's the view of the CEO of the UK's Financial Services Authority Hector Sants.
In an interview with Reuters he said the FSA was focused on the current crisis in Europe.HECTOR SANTS, CEO OF THE UK FINANCIAL SERVICES AUTHORITY, SAYING:
"We realise that at the moment there are a number of key issues being discussed in Europe and we absolutely must have focussing on Europe at the top of our list, along with dealing with the immediate crisis - and both those issues are at the top of our list."
Germany, France and Japan are opposed to calls for increased capital.
Sants says he's happy to wait until all negotiations amongst G20 partners have been completed, which could stretch well into the new year.
On Friday European Banking Supervisors including the FSA issued guidelines on bank bonuses.
Sants described them as 'a sensible package':
HECTOR SANTS, CEO OF THE UK FINANCIAL SERVICES AUTHORITY, SAYING:
"One of the key lessons to be learned from the crisis, only one of them but one of the key lessons is to ensure that incentives structures minimise the incentives to individuals to put the institutions they work for at risk."
The FSA is set to be dismantled next year.
It will be replaced by a new regulation authority at the Bank of England.
Sants will be it's deputy chair.
Ingrid Smith, Reuters