FCA slammed for dropping banking culture review

Ryan Bembridge

January 4, 2016

The Financial Conduct Authority faces the wrath of politicians after dropping its review into the culture of UK banks.

The FCA reportedly dropped the review with the reasoning that each banking institution is unique and cannot easily be compared. It instead said it will work directly with banks to promote change.

Former business secretary Vince Cable yesterday told Sky News that Chancellor George Osborne and Bank of England Governor Mark Carney are “lacking motivation” to crack down on banking fraud by turning a “blind eye to “abuses in the system”.

He added that the government is only listening to bankers by promoting “excessive risk-taking”.

Wes Streeting, Labour MP and Treasury select committee member, told City AM he was less than impressed. He said he will talk to other committee members this week in a bid to to call an evidence session with top FCA officials.

He added: “The FCA needs to explain why they have taken this decision. It sends completely the wrong message. I think we should see the FCA sooner rather than later.”

Tracey McDermott has been acting FCA chief executive since September after Chancellor George Osborne failed to renew ex-CEO Martin Wheatley’s five-year contract.

Mark Garnier, another member of the Treasury select committee and Conservative MP, told City AM that McDermott will have been instrumental in the decision.

He said: “McDermott ultimately would have been responsible for backing off this review.

“I wonder if that is her responding to a belief…if that is what she would need to do to get the job as chief executive.”

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