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UK Market Regulator Head Who Thought "All Bankers Were Evil" Let Go After "Making Too Many Enemies"

Tyler Durden's picture




 

On the surface it may appear that the head of the FCA, the UK's financial regulator, Martin Wheatly resigned voluntarily yesterday. The truth is that here only "quit" after being told by George Osborne that he would not renew his contract when it expires in March.

For those who are unfamiliar, Wheatley led the FCA from its inception in April 2013, and oversaw a regulator that extracted record penalties from the industry, teaming with US authorities in the Libor and foreign exchange benchmark-rigging scandals. He also targeted retail banks for mis-selling products to consumers and secured sweeping new powers, including oversight of payday lenders and antitrust tools. Granted, he was not able to send any prominent bankers to prison - the only person behind bars so far is the scapegoat for the HFT's May 2010 flash crash, Nav Sarao - but his surprisingly dogged crackdown on manipulation was the main catalyst for the revelation of Liborgate (formerly known as a "conspiracy theory") which then spread to FX, commodities (including gold) and Treasuries, and which most recently cost the jobs of Deutsche Bank's co-CEO and led to several changes at the top of Barclays bank.

It also cost Wheatley his job.

According to the FT, citing government insiders, the message that his contract would expire was relayed to Mr Wheatley “relatively recently” and that the Financial Conduct Authority chief had decided that in such circumstances he did not want to serve out the remainder of his existing term. He will step down on September 12, with Tracey McDermott, the regulator’s head of supervision, taking over until a replacement is found."

The move comes a month after Mr Osborne, the chancellor, unveiled a “new settlement” with the City of London — suggesting a shift from an era of tough regulation of the financial services sector.

The paradox: while Osborne’s official statement praised Mr Wheatley’s performance but talked about moving the FCA on to “the next stage. The government believes that a different leadership is required” to build on the FCA’s foundations, he said.

In other words, the chancellor got "the tap on the shoulder" and was advised by UK's banks that they would much rather if there is only token regulation and the pretense of supervision instead of someone like Wheatley who keeps making banks pay massive fines every quarter to the point where one-time, non-recurring legal charges are both non-one time and recurring (even if it means nobody actually goes to prison).

Furthermore, the former head of Hong Kong’s Securities and Futures Commission did not always have the confidence of government officials, who have privately urged regulators to take a lighter approach as the economy improves and banker-bashing falls out of favour. Some industry executives, meanwhile, viewed him as remote and unhelpful and complained to senior Conservative politicians about his consumer-champion agenda.

But his biggest transgression: "one senior UK bank director said: "The problem with Martin was that he made so many enemies, partly for good reason because banks did rightly need firm treatment after the crisis. But he seemed to have a mindset that all bankers were evil."

We wonder where he may have gotten that idea:

But most importantly, "he made many enemies", enemies which just happen to be in control of the decision-making process by their puppets in UK government.

Which also means that the period of massive civil (if not criminal) penalty charges in the UK is now over and the time of banker prosecution, fake as it may have been, is officially over. It also means that it is once again open season for banks to manipulate and rig anything and everything that has a "market-set" price.

Then again, there may be more to Wheatley's departure than meets the eye.

As one commentator notes, "Martin Wheatley achieved something unique: both bankers and victims of financial services misconduct hated him, and wanted him gone. The former grew tired of the procession of huge, seemingly random fines imposed on their blameless shareholders and the endless series of behavioural economics-based recommendations imposed by supervision teams. The latter berated him for refusing to hound the bad guys out of the industry and lock them up.

Both are right. Wheatley's era will be judged as one in which there was a lack of discrimination and precision. Much easier to fine a bank than prosecute a rogue banker. Especially if some of the rogues are in very senior positions, and also have the ability to dole out obscenely well-paid sinecures to failed ex-regulators...

 

The need to track down and eliminate the bad apples while laying off the shareholders and let managers manage is the message that George Osborne and Mark Carney delivered, in no uncertain terms, at the Mansion House last month. Just days later, Wheatley made an ill-judged comment to a reporter about tracking down wrongdoers not being 'in our charter' (whatever that is). My guess is that this is what hammered the final nail into his professional coffin.

This does appear accurate: after all if Wheatley really did want to ferret out all corruption he should have started with the Bank of England itself, which as we reported before, was one of the key participants in the FX rigging scandal, and where after a few key personnel were let go, things are back to normal. Because the last thing one is allowed to do nowadays, is to suggest that central banks themselves are participating in the rigging of market products, be they FX or gold (which lately are synonymous according to the US OCC) and hint that the gross market manipulation taking place in China is really quite endemic and is merely an example of what central banks do the world over.

One can only hope that the assessment above is accurate and that Wheatley's replacement will indeed crack down on actual banks instead of bank shareholders, who end up being the ones who pay the fines for banker transgression.

And just to make sure all the t's are crossed, the obligatory diplomatic statements that the departure is amicable and Wheatley remains respected, were a key part of the charade. Sure enough.

Mr Wheatley said: “I am incredibly proud of all we have achieved together in building the FCA over the past four years. I know that the organisation will build on that strong start and work so that the financial services industry continues to thrive.”

 

John Griffith-Jones, chairman of the FCA, said: “Martin has done an outstanding job as chief executive setting up and leading the FCA over the past four years. We owe him a lot and I and my board would like to thank him for his great efforts in setting up the organisation and for the contribution he has made to putting conduct so firmly at the top of the financial services agenda.”

Because no matter what the real reason behind Wheatley's departure, whatever bankers want...

And speaking of which, if only the US SEC had as its "leader" not a person whose entire legal career was spent defending Wall Street and is now forced to recuse herself from virtually every enforcement action, then just maybe the US retail investor would still be willing to participate in the rigged casino, and allow banks and hedge funds to offload their record risk holdings to the "dumb money" which is increasingly looking like the smartest money of all.

 

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Sat, 07/18/2015 - 11:37 | 6326993 This is it
This is it's picture

When everyone is evil, no one is evil.

Next off the building...

Sat, 07/18/2015 - 11:44 | 6327011 VinceFostersGhost
VinceFostersGhost's picture

 

 

"All Bankers Were Evil"

 

True....but you just can't come out and say that.

 

He's lucky he didn't get his ass nailgunned. Cat must have a guardian angel or something.

Sat, 07/18/2015 - 11:47 | 6327017 Theosebes Goodfellow
Theosebes Goodfellow's picture

~"UK Market Regulator Head Who Thought "All Bankers Were Evil" Let Go After "Making Too Many Enemies""~

Because you know, as a regulator, you're supposed to be "pals" to them banksters...

Sat, 07/18/2015 - 11:55 | 6327036 man of Wool
man of Wool's picture

The British Government are evil. More like a bunch of cunts really.

Sat, 07/18/2015 - 12:05 | 6327058 Waylon Bits
Waylon Bits's picture

"Banks are evil but we love those cotton-linen Federal Reserve Notes"

 

                                                             ~ A dipshit "alternative" ZH reader

Sat, 07/18/2015 - 12:23 | 6327089 phoolish
phoolish's picture

Sure don't want a watchdog actually awake and watching.

Sat, 07/18/2015 - 19:18 | 6328030 Pinto Currency
Pinto Currency's picture

 

 

Perhaps he was punted as the brown stuff is about to hit the rotary oscillator.

Sat, 07/18/2015 - 19:49 | 6328093 philipat
philipat's picture

This outrage could never happen in The US where "Regulators" are selected, depending on which side of the revolving door, on the basis of either:

1. A seconded insider in the industry to be "regulated", or

2. Promised a Senior multi-million dollar job in same said industry upon completeion of a 4-5 year drudge as "Regulator".

In other parts of the world, this is known as "Corruption"....

Sat, 07/18/2015 - 12:40 | 6327117 Oh regional Indian
Oh regional Indian's picture

Once upon a time there was a king who wanted to go fishing.
>
> He called the royal weather forecaster and enquired as to the weather
> forecast for the next few hours. The weatherman assured him that there
> was no chance of rain in the coming days.
>
> So the king went fishing with his wife, the queen. On the way he met a
> farmer on his donkey. Upon seeing the king the farmer said, "Your
> Majesty, you should return to the palace at once because in just a
> short time I expect a huge amount of rain to fall in this area".
>
> The king was polite and considerate, he replied: "I hold the palace
> meteorologist in high regard. He is an extensively educated and
> experienced professional. Besides, I pay him very high wages. He gave
> me a very different forecast. I trust him and I will continue on my
> way." So he continued on his way.
>
> However, a short time later a torrential rain fell from the sky. The
> King and Queen were totally soaked and their entourage chuckled upon
> seeing them in such a shameful condition.
>
> Furious, the king returned to the palace and gave the order to fire
> the weatherman at once! Then he summoned the farmer and offered him
> the prestigious and high paying role of royal forecaster.
>
> The farmer said, "Your Majesty, I do not know anything about
> forecasting. I obtain my information from my donkey. If I see my
> donkey's ears drooping, it means with certainty that it will rain."
>
> So the king hired the donkey. And so began the practice of hiring
> asses to work in the government and occupy its highest and most
> influential positions.

Sat, 07/18/2015 - 12:47 | 6327127 MiltonFriedmans...
MiltonFriedmansNightmare's picture

British government; overwhelming majority are pedarasts who are being blackmailed by Serco, and that is a little known fact.

Sat, 07/18/2015 - 13:07 | 6327157 Oh regional Indian
Oh regional Indian's picture

Yes, for a long long time at that.

A pedarast mafia...strange beginnings too and middles as well....

proof the Virgin Queen was an imposter in drag? Shocking new theory about Elizabeth I unearthed in historic manuscripts

https://aadivaahan.wordpress.com/2013/06/09/3-years-and-counting-and-the...

Sat, 07/18/2015 - 14:07 | 6327312 The.Harmless.Jew
The.Harmless.Jew's picture

 

 

And, as someone who served - at least thought he was serving his people and nation - I can tell you that a LOT and I mean a LOT of the civil service entry jobs, and those that make decisions on the ordinary people's lives are either indians (perhaps not so-regional), or other south-eastern asians (nepal, pakistan, bengals), and lately a lot more kurds. 

 

I honestly can't figure out why there's a love in with Kurds - sure, they fight isis, etc... but historically speaking they are just like the chosenite parasites.

 

Anyway, without digressing, the ones higher up are in the pockets of serco and g4s lobbyists, then then further up the chain of command are the folks (alas, they are all white & ashkanazi nobility - or so they call themselves that).

Sat, 07/18/2015 - 16:05 | 6327591 BarkingCat
BarkingCat's picture

What do you expect from a bunch of queer pedophiles???

Someone who would molest little boys will be an honorable person???

Sat, 07/18/2015 - 18:15 | 6327925 OLD YELLER
OLD YELLER's picture

Steady on there Wooly. Cunts are useful, but what use are British Politicians?

Sun, 07/19/2015 - 05:01 | 6328925 Ofelas
Ofelas's picture

UK debt either over 500% or 900% depends on which numbers you want to include, in any case it is a time bomb

http://moneyweek.com/the-end-of-britain-where-we-get-our-figures/

Sat, 07/18/2015 - 11:55 | 6327034 Cacete de Ouro
Cacete de Ouro's picture

"I am legend"

Sat, 07/18/2015 - 12:05 | 6327053 Jumbotron
Jumbotron's picture

"As one commentator notes, "Martin Wheatley achieved something unique: both bankers and victims of financial services misconduct hated him, and wanted him gone. The former grew tired of the procession of huge, seemingly random fines imposed on their blameless shareholders and the endless series of behavioural economics-based recommendations imposed by supervision teams. The latter berated him for refusing to hound the bad guys out of the industry and lock them up."

 

That's why he wasn't nail gunned or shitgummed.   As long as you don't jail, you live.  If you extort....then ok.  We do that to as a matter of course.  But don't be a loud mouth about it.

Sat, 07/18/2015 - 13:29 | 6327222 MiltonFriedmans...
MiltonFriedmansNightmare's picture

Jumbo, do you know where the fines paid by the bankers go? The US Justice department, which then uses them to fund 8a companies involved in false flag operations, murder for hire schemes and playoffs to families and communities involved I.e. Charleston, to cite a recent example. A nifty, evil system they've devised.

Sat, 07/18/2015 - 14:07 | 6327314 stacking12321
stacking12321's picture

how do you know?

i would love to see some evidence of that. i wouldn't put it past them though

 

Sat, 07/18/2015 - 17:55 | 6327874 MiltonFriedmans...
MiltonFriedmansNightmare's picture

Stacking,
Abel Danger, they have done some amazing investigative work.

Sat, 07/18/2015 - 14:21 | 6327350 HowdyDoody
HowdyDoody's picture

The 99% are deemed by the 1% to be guilty until proven innocent. It seems reasonable for the goose to meet the gander.

Sat, 07/18/2015 - 11:56 | 6327040 Jumbotron
Jumbotron's picture

Spoke Truth to Power.

And Power won.

" I fought the Law and the Law won.....I fought the Law and the.....Law won."

 

Bow down to your Masters slaves. 

https://www.youtube.com/watch?v=NKkRDMil0bw 


Sat, 07/18/2015 - 11:39 | 6326998 Tinky
Tinky's picture

That chart is interesting in that it underscores how the Government increasingly uses "settlements" as an important revenue stream.

No prosecutions as long as the banks make healthy – ahem – contributions. The very definition of quid pro quo.

Sat, 07/18/2015 - 11:42 | 6327005 i_call_you_my_base
i_call_you_my_base's picture

Which makes it effectively racketeering.

Sat, 07/18/2015 - 12:02 | 6327052 shovelhead
shovelhead's picture

"A little beak wetting is all."

-Don Fannucci-

Sat, 07/18/2015 - 11:46 | 6327013 snodgrass
snodgrass's picture

The conspiracy has always been between the bankers and the government. One hand feeds the other while both extract what little wealth is left from everyone else. Meanwhile, let's see what the Kardashians are doing.

Sat, 07/18/2015 - 11:51 | 6327024 wisebastard
wisebastard's picture

All bankers are worthless.......I mean it. When I was a young teenager I asked a well know Goldman Sach banker for help because my parent was neglecting me. Now this asshole has connection through hollywood and even the white house. He often jokes around about Barack Obama being a puppet that is in his pocket and how the last 5 places he worked at mysterally got bombed including building 7 on 9/11. This guy could have made one phone to get the state to put me in a better environment and instead pays an NSA agent to spy and harass me. I have lost 4 jobs a business and they have made it very clear that they wont me to kill myself. Thats their goal..............if i kill myself its a gold medal for them.............think im fucking kidding you..........bankers need to die. They should all be locked up and tortured for the rest of thier lifes..........

 

Sat, 07/18/2015 - 12:05 | 6327057 shovelhead
shovelhead's picture

You got off easy.

He could have gave you a loan for a six bedroom house.

Sat, 07/18/2015 - 12:41 | 6327120 SmackDaddy
SmackDaddy's picture

You sure are a special kind of stupid. Can't spend your whole life trying to get in the club, and then start bashing it when it's vlear you're not getting in

Sat, 07/18/2015 - 13:00 | 6327149 Vullsain
Vullsain's picture

The sociopaths run things..

Sat, 07/18/2015 - 11:51 | 6327025 aleph0
aleph0's picture

"The former grew tired of the procession of huge, seemingly random fines imposed on their blameless shareholders and the endless series of behavioural economics-based recommendations imposed by supervision teams."

Make it simple ... just arrest those CEOs, COOs and two levels of management top-down without even fining the Bank.
Then use that "fine money" to compensate the victims.

The FRAUD would then be stopped dead in it's tracks.

Who actually gets the "fine money" BTW ... the Government ;-)

 

Sat, 07/18/2015 - 11:51 | 6327028 caustixoid
caustixoid's picture

"Truth is treason in an empire of lies."  Guess he was told he wants to spend more time with his family.

Sat, 07/18/2015 - 11:57 | 6327041 Fun Facts
Fun Facts's picture

Goyim regulators don't mix with the Khazar criminal class.

Sat, 07/18/2015 - 12:01 | 6327049 venturen
venturen's picture

wouldn't execution be more effective for bankers?

Sat, 07/18/2015 - 12:28 | 6327096 zhandax
zhandax's picture

Yes, but it isn't fashionable, yet.

Sat, 07/18/2015 - 14:19 | 6327345 HowdyDoody
HowdyDoody's picture

Amputating the currency debaser's (aka bankster) right hand and nailing it above the bank door used to be effective in the Middle Ages.

Sat, 07/18/2015 - 12:19 | 6327083 Joebloinvestor
Joebloinvestor's picture

So he was the only UK regulator that wasn't on the take or incompetent?

Sat, 07/18/2015 - 12:27 | 6327094 To Hell In A Ha...
To Hell In A Handbasket's picture

Who doubts regulatory capture is not complete? Stories like this merely comfirm our ruling elite and our elected offficials are corrupt to the core and are not fit for purpose.

Sat, 07/18/2015 - 15:59 | 6327579 css1971
css1971's picture

Now, what gets me are those who think this is a new thing.

 

Sat, 07/18/2015 - 12:39 | 6327114 Handful of Dust
Handful of Dust's picture

S&P fired that head analyst when he questioned thier equations for determing those solid AAA+++ subprime bonds. He felt they were what they were, junk. Of course, they promptly, fired him.

Sat, 07/18/2015 - 13:12 | 6327171 The Count
The Count's picture

Because in the new bizarro world we live in one bad bond is bad, but a bundle of bad bonds is diversification and thus good!

 

Sat, 07/18/2015 - 12:43 | 6327123 MSorciere
MSorciere's picture

Thank you, Martin Wheatley.

 

And yes, of course banks and bankers ARE evil...

Sat, 07/18/2015 - 12:44 | 6327124 shovelhead
shovelhead's picture

Meanwhile, in other British news...

http://www.bbc.com/news/uk-33578174

"Nonsense" Said a Royal Spokesperson. " They were merely waving goodbye to the dog as he was rounded up for extermination."

Sat, 07/18/2015 - 16:59 | 6327733 HowdyDoody
HowdyDoody's picture

Prinz Harry the Nazi says it is all a mistake - in 2005

http://news.bbc.co.uk/1/hi/4170083.stm

Sat, 07/18/2015 - 13:10 | 6327164 The Count
The Count's picture

 

Anybody here have inside knowledge about the 50+ banker suicides in London?

What did they all know or do to warrant pretty extreme measures?

 

Sun, 07/19/2015 - 04:18 | 6328890 Fractal Parasite
Fractal Parasite's picture

According to Jim Willie, they had intimate knowledge of HFT, rate rigging and the like technologies, algorithms, names, correspondence, etc. These were mid-level people in the system, not the masterminds of criminality. As such, they could have, and in due course probably would have, delivered incriminating testimony in a public court.

Sat, 07/18/2015 - 13:11 | 6327168 quasi_verbatim
quasi_verbatim's picture

You guys haven't met Tower Block Tracey, the replacement, yet.

Think a combination of Lagarde, Merkel and Jenner. When this SHTF, you'll know who it's coming from.

 

Sat, 07/18/2015 - 14:15 | 6327339 kchrisc
kchrisc's picture

Those with the printed money make the rules.

Liberty is a demand. Tyranny is submission..

 

Those with the guillotines make those rules null and void.

Sat, 07/18/2015 - 14:33 | 6327376 Fuku Ben
Fuku Ben's picture

It's rarely, if ever, all or nothing. After all aren't the 99% stuck in the middle. Cut off from the employment contracts and awaiting only unemployment benefits and the hope of their next keep themselves alive job on the other side. Many of the 99% are put in positions of doing what many don't want to do just to survive every day. And then many knowingly or unknowingly escaping through every means of self-destruction possible.

But it appears the 1% are also cut off too. The biggest problem is that they're now holding everyone else back including themselves. And their vision is if the 99% won't do what they want then they'll just find someone else to replace you that will do it. And your replacement will do it the 1% way and cheaper too. And that's the current model in a period of good employment.

What do you expect your options will be after the planned upcoming financial collapse? I ask that knowing the answer. And the confidence, not as a false prophet or prognosticator, but as a reformed bankster and current entrepreneur, who was fortunate enough to open all my eyes and see the light.

Who at the top cares enough enough about themselves or their own families, let alone the 99%, to consider the fact that it may be them or their superior that's holding everyone back from full meaningful productive employment and self-realizing growth? Is the disconnect evil? Is it just loss of vision and maintaining the status quo at all costs? Or more succinctly, as I've previously mentioned, a fear of change? Or is it something else? Wouldn't the right change of course provide the potential to enable everyone to find themselves somewhere over the rainbow?

Again, who are the visionary leaders in the 1% that will help avert the financial calamity? For those of you that are on the fence or are hesitant to stand out for fear of retribution you may want to hasten your decision to act. There's no time like the present. And time is running out.

Or will the diamond in the rough come from the 99%? And then who, among the 1%, would be as wise as the Owl to support them?

Note: I will make a few additional posts later relating to some specifics that some, but especially the 99%, may find both enlightening and helpful to you and your families.

Sat, 07/18/2015 - 15:04 | 6327446 activisor
activisor's picture

More proof, if any is needed, that top politicians take their directions friom bankers.

It really is a cesspit in the City.

Sat, 07/18/2015 - 16:52 | 6327717 Bankster Kibble
Bankster Kibble's picture

Not just the City.  Catherine Austin Fitts got canned from USA's Department of Housing and Urban Development for similar reasons.  She was not enough of a "team player" and did not take care of "our friends." 

Lots of cesspits around here . . .

Sat, 07/18/2015 - 15:45 | 6327536 Gothic Optimism
Gothic Optimism's picture

Interesting. As a connoisseur of fine blood, the more evil the banker the better. all that precious energergetic adrenaline and fear charged glucose pumping into their blood hours just before they jump off some high structure. Or blast away with a nailgun. Pity, what a waste. The real prize would be the top tier evil bankers. I am eternal. I am Night.

Sat, 07/18/2015 - 15:58 | 6327575 Fahque Imuhnutjahb
Fahque Imuhnutjahb's picture

"The problem with Martin was " his correctness.  So who has the problem?

Sat, 07/18/2015 - 16:22 | 6327633 smacker
smacker's picture

"Granted, he [Martin Wheatly] was not able to send any prominent bankers to prison..."

This is not at all surprsing. The City has a very privileged position in the UK.

Before any criminal charges can be brought against a City Institution (I assume this means its executives), it has to be signed off by the Business Secretary, which is a political position, not law enforcement.

You couldn't make this up. Is it any wonder City Banks are run by fraudsters and do what they like?

Sun, 07/19/2015 - 04:26 | 6328898 Fractal Parasite
Fractal Parasite's picture

These two 5-minute videos give a concise, informative and eye-opening overview of the special legal status of the City of London (square mile of criminality).

The (Secret) City of London, Part 1: History
http://www.youtube.com/watch?v=LrObZ_HZZUc

The (Secret) City of London, Part 2: Government
http://www.youtube.com/watch?v=z1ROpIKZe-c

Do NOT follow this link or you will be banned from the site!