Tuesday, 1 January 2008
The FSA gets tough with the little guys
It is amazing what you miss when you keep away from money lenders. Until this morning, I hadn't even heard of "doorstep lenders". However, it appears that one such lender - the London Scottish Bank - admitted that it does not have enough capital to satisfy the FSA.
A closer examination of today's story in the Guardian reveals that the London Scottish Bank is rather a small affair. Losses, if there any, will be measured in the low millions. London Scottish Bank is no Northern Rock.
It is good to see the FSA getting tough with banks who can not maintain sufficient capital. It is a pity that the FSA did not get tougher earlier with the likes of Northern Rock.