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UK's New Chancellor Has Abolished The English SEC-Equivalent, The FSA
George Osborne, the UK's Chancellor of the Exchequer, a role equivalent to that of Tim Geithner in the US, at least in public office, not sure about tax "avoidance", has just announced the abolition of the FSA - the English just as worthless equivalent to the SEC. It is time Mary Schapiro's corrupt organization share the same fate. From the FT: "George Osborne moved to redress what he described as the spectacular regulatory failure of the City, announcing the abolition of the Financial Services Authority and a sweeping increase in the Bank of England’s powers." And in other news, UK's Bernanke-equivalent will now double up as uber regulator and Viceroy of the West Indies, due to amazing new powers given to him by the Osbourne super mushroom: "Mervyn King, the Bank’s governor, will become one of the most powerful central bankers in the world, with a new remit to prevent the build-up of risk in the financial system in addition to his monetary policy role." In other words, one big step forward, and an infinite number of steps back. After all why bother with petty theft, when the Central Banks will soon be funneling trillions away from what's left of the global middle class, perfectly legally, in broad daylight, and at record 2s10s.
Mr King told a City audience at Mansion House on Wednesday night that his new role in enforcing financial stability was to “turn down the music when the dancing gets a little too wild”.
Mr Osborne confirmed his plan to split up the FSA – a creation of Gordon Brown in 1997 – which the chancellor largely blames for failing to spot the approaching financial hurricane and the weakness of banks like Northern Rock.
“The FSA became a narrow regulator, almost entirely focussed on rules-based regulation,” Mr Osborne said in his first Mansion House address. “No-one was controlling levels of debt and when the crunch came no-one knew who was in charge.”
The FSA will lose much of its role to a new Consumer Protection and Markets Authority, charged with regulating the conduct of every bank and policing the City.
The rump of the organisation will be refocussed as a prudential regulator – as yet unnamed – in charge of ensuring that individual banks, building societies and insurance companies are operating safely.
It will become a subsidiary of the Bank of England, feeding intelligence back to a new Financial Policy Committee, chaired by Mr King, which will be given unspecified tools to stop a dangerous build-up of credit or asset bubbles.
Hector Sants, the FSA’s chief executive who had previously announced his intention to quit, has agreed to stay on for a further three years after pleading from Mr Osborne over the last week.
The biggest losers from this development will be Britain's hedge funds, which for years have put the kind of insider trading that got Raj Raj in Sing Sing, to shame. Of course, should these funds promptly gorge themselves on toxic crap and join their far more insolvent TBTF brethren in the taxpayer-bailout trough, nothing will be able to touch the Man Groups of the world.
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You can actually punish an agency for incompetence? My American brain can't even wrap around that concept. It's like looking into an alien world....
You can punish one for it, as long as you reward another one for the same.
Wasn't Mervyn King proven to be clinically retarded?
If Tiny Tim dumped the SEC who would take GS down?
If Tiny Tim dumps the SEC, that IS GS taking down someone.
Ted Nugent.
Chuck Norris?
Fuck
If only FINRA would follow...
A more powerful central bank -- hmmm, what a novel concept.
Don'ta worry..... be happy.
HOLY @#$%!
If it is not concentration of powers...
Funny one. Sounds like some ideas they were so much propagated by 1776 America really come to end.
That is the real failure, not the economy.
Has the whole world gone crazy!? Am I the only one around here that gives a shit about the rules?!?!
Hansel
Rules are for the little people.
This type of wild shit is going to start happening more & more frequently.
Time until the end of this madness, and the beginning of a new type of madness is getting short.
Bring it.
STAT.
Swervin' Mervyn over at the BOE will save England from ruin. lololololololol!!!!
Hopefully everyone has at least a passing familiarity with Mr. Mervyn King. And I do say, King. Did you get the King part?
Once a king always a king but once a night is enough.
The chairman of the FSA was saying some very mean and somewhat radical things about the financial system (including HFT) just last March. I don't know if that had anything to do with the abolition of the FSA; apparently there was a pretty general feeling that the tripartite system had failed.
Lord Turner is a smart guy who had some genuinely good ideas, but they were far too radical for the people in charge. Osborne made a pact with MK to undermine Labour, partly by painting the economy to be in an even worse position, partly by being fed information, in exchange for giving even more power to the BoE.
To be fair, the system failed mainly because the lower level FSA staff were totally clueless, whereas the BoE people are pretty astute, but it does feel like a New World Order move.
However, it is worth remembering that the BoE is not like the Fed, it is not controlled by the big banks. The BoE will no doubt use its power to distance the UK even further from the European project.
It still seems that the UK, including the government and the Bank of England, is much more serious about financial reform than the US is - in particular, controlling credit bubbles is explicitly on the table as a major objective. Mind you, I'm not optimistic that they'll succeed. Partly because I suspect that really curtailing the credit cycle will require some kind of fully-backed banking, and while there are mainstream UK figures like Martin Wolf calling for that, as far as I know no-one in power (not even Turner) has come out in favour of it.
The banksters, elitists and TPTB will continue along extracting liberties and consolidating power until their is retribution. Now retribution can come in any number of ways but it will come and this will strike fear in them all. And then it ends.
They act with impunity because they believe they have nothing to fear but soon they will.
I'm not as optimistic as you are John about the end coming anytime soon or ever.
The "elite" have nothing to fear because they know that they have succeeded in dumbing down the general public. I'm witnessing it every day. After all that has happened the last almost 3 years and most people I talk to are still in a fog. Much more interested in talking about who got kicked off their favorite reality show than the financial raping of their children (not to even mention the continued erosion of fundamental rights and liberties and our road to surfdom).
It will take a totally unforeseen and catastrophic event to end the elite's domination of our society.
Exactly.
Its very hard to be a glass half full kinda guy anymore.
The rules seem to be "keep your head down and take care of yourself"
Anything more altruistic than that for the little people usually ends in pain.
Divide and conquer.
I hear what all of you are saying but I must also request that you reflect on one thing and abandon the sands through the hourglass that make up our lifetime.
Tyranny and dictators have always been toppled in any government on a long enough time line sometimes through revolution, sometimes through democracy and at times through other more means. Regardless of the empire and nation benefits of the few at the expense of the many never lasts.
You can also state that through all these generations of mankind there still persists the will to dominate all men in human nature. And that is what it all comes down to inherently is good and evil. Evil and good will always co-exist and evil will at times dominate the landscape through self preservation and the trait of fear in the masses. However the reign of evil is always ended abruptly because eventually the people have nothing left to lose since they have lost their property and the lives of the ancestors and no longer wish to subject their offspring to the evils yet to come.
When it all ends we may no longer be here but it will all end and something greater will be ushered in and we will progress and a sure as the rain evil will return slowly and under different guises since they care only for themselves and wish to harness their intellect to harm or wish to use their inherited capital & power to harm but eventually good and courage of the few wins out because there is only one version of the truth.
This is why I come to ZeroHedge because fairytales are enjoyable and entertaining but need to be enjoyed in moderation and not woven into our lives because removal from reality is not productive.
Taraxias they are in a fog of epic proportions but that is why we must speak one by one to them and must spend our last breath speaking the truth. We live in a manufactured utopia but are deprived of the true utopia that comes from the strength to endure a hardship and personal pain only to right your ways and become a better person.
"It is only a beginning, always. The young must know it; the old must know it. It must always sustain us, because the greatness comes not when things go always good for you, but the greatness comes and you are really tested, when you take some knocks, some disappointments, when sadness comes, because only if you have been in the deepest valley can you ever know how magnificent it is to be on the highest mountain"
-Richard Nixon Farewell Speech
Now I am not one to quote Nixon but this was his finest speech. He was a misunderstood and conflicted person unable to fight a system that captured him and it rotted him to his core and only when had lost everything was he able to repent and speak as one of us and then he understood how he allowed the opportunity he had to slip through his fingers lost forever to the machinations of the elite.
Might it be because they think you are the 'braindead'?
Financial raping of their children? No, raping of others' children.
Two groups: A, gifted with a high rate in transforming resources to accomodate human comfort. B, much less gifted with a consequence: they sit on a pile of resources.
Through generations, members of A buy resources from B using debt.
Turning point: when B members sit on not enough resources to transform their environment the way A managed to, no matter B members'skills.
Each new A generation inherits a world built on abundancy through debt.
Each new B generation inherits a world to be built on less and less resources. The level of skills they need to acquire is each time more important if they want to keep transforming their environment.
The US is definitively part of A as the most meaningful member.
Some generations to come are definitively put in a nasty mess, a dead end actually but only a tiny number of them will live in the US.
The US is one country where children are going to inherit a world built on abudancy and through debt. They will be on the best part on the world. By far.
Once this little fact in mind, you might understand why most people you talk to dont pay attention to your speech.
Same with power. Serfdom includes serfs but also landlords. Some will finish serfs, the others landlords.
I read this past week the FTSE was being heavily shorted. Did they do this so the bankers could totally manipulate the market?
"The Chancellor of the Exchequer George Osborne has announced that Sir John Vickers will chair an Independent Commission on Banking" - http://www.mortgageintroducer.com/mortgages/237744/5/Industry_in_depth/Sir_John_Vickers_to_chair_banking_commission.htm
Sir John Vickers - http://www.economics.ox.ac.uk/index.php/staff/vickers/
What?? Dismantling an organization similiar to the SEC????
SELL PORN STOCKS NOW!
Sorry lieutenant dan, she taste a like cigarette
Jamie Dimon: Who's your buddy?
Mary Schapiro: WOOF!
Can't wait to see the results of giving financial regulatory powers to an organization responsible for creating fiat currency. I can't see how anything could go wrong with that.
+1
Does this mean the BOE is 2Big2Fail?
It sounds good, sounds like the UK Gov is getting tough. I know somebody who works for the FSA. Not moving office but they are getting a new e-mail address and the building is being rebranded. Future banking crisis averted!
The prostitute that gave birth to the Great Whore Babylon America and the Abomination that sits on top of Jerusalem will soon mourn like no other.
Nothing short of what she deserves.
EURO bullish warnings mentioned earlier, have strengthened today. Vice versa for the USD index of course.
I have detected EURO buying support for several weeks now.
XAUEUR daily chart gives bearish warnings as of today.
This could be an important development.
The proprietary indicators I use in my technical analysis can identify trend changes before they occur.
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