Tuesday, 3 February 2009

More proof of FSA incompetence

Why does this not surprise me:

The City watchdog was warned that Icelandic bank Kaupthing was not "fit and proper" to run the UK bank Singer & Friedlander, MPs were told today. Tony Shearer, former chief executive of Singer & Friedlander (S&F), said he contacted the Financial Services Authority about his doubts in April 2005 during the takeover of the group by Kaupthing.

He said he and fellow directors took "every step that they thought was reasonable" to alert the FSA that they did not think Kaupthing was "fit and proper to run a UK bank". Overall, five of the seven members of the board made their concerns known in some way.

(From the Independent)

Isn't it about time that there was a public enquiry into the activities of the FSA. What exactly were they doing during all those bubble years?


Mark Wadsworth said...

Which 'activities' exactly? Is doing nothing a crime?

Anonymous said...

As ever you are spot on Alice.

The answer appears to involve accruing public sector pension rights.

Anonymous said...

Whenever there is an example of gross incompetence from politicians or civil servants or judges, my wife says "look at their bank accounts". She means it both literally and metaphorically.

Nick von Mises said...

Mind you, the board of a company being taken over complaining about the people taking them over could've easily sounded like sour grapes. It's the substance of the warning that matters, not the simple fact it was made.

AntiCitizenOne said...

Perhaps not...

Paul Selway-Swift, Chairman of Singer & Friedlander, said:
"The offer presents an attractive valuation of Singer & Friedlander and has the unanimous support of the Board. Since Kaupthing Bank became a significant shareholder in Singer & Friedlander in October 2003 it has been very supportive of management, and more recently has also partnered the group in some of our large loan positions."

Tony Shearer, Chief Executive Officer of Singer & Friedlander, said:
"Singer & Friedlander is well positioned in its core markets and its growth strategy over the last year has yielded good returns for shareholders. The combination with Kaupthing Bank will allow Singer & Friedlander to continue to develop this strategy within a larger financial group."

AntiCitizenOne said...


Traders speculated Kaupthing, which is Singer's largest single shareholder, may look to increase its stake or possibly launch a bid for the group. However, they said an offer for the company is unlikely to currently be on the table as finance director Anthony Shearer bought 10,000 shares last week.

Electro-Kevin said...

SFA more like.