Financial Services Authority chairman Adair Turner has warned banks that a slew of regulation is on the way to reassure the public that the financial crisis will not happen again.
Speaking at Davos, Lord Turner said that banks aiming to escape further regulation by moving abroad believed “a complete fantasy” and pledged to crack down on unregulated areas of finance.
“There are still important elements of the prudential regime to put in place, such as shadow banking: we have to do more work and the industry has got to accept that,” Lord Turner told the Telegraph in an interview.
Turner was responding to speakers from the banking world who had told the World Economic Forum that additional regulation could stifle global growth.
Lord Turner told journalists that the variety of debates at Davos this year was a sign of success: “[W]hen the world gets gripped by one big theme it usually either means there’s a big disaster or else people are getting in the grip of some new irrational exuberance.”