FSA Says It's Time To Pay

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Like it or not, new bank regulations are almost sure to make their way into the system on both sides of the Atlantic. Those massive financial services supermarkets got carried away with how much risk they thought they could properly manage and now safeguards need to be put in place to avoid a repeat. The outrage at some of the UK's corporate citizens has been fierce. The message is clear- banks should pay for their sins. In fact, the price tag for their sins could be as high as £2 billion to provide a better liquidity cushion. Time to celebrate a job well done. The banks will pay for their sins and innocent bystanders such as their customers will reap the benefits.

"This is not a cost to your shareholders in the long term, this is a cost to your customers," (liquidity policy manager at the Financial Services Authority David) Morgan said in a speech. "You will pass these costs on to your customers."

That ought to teach them.
FSA Says Bank Customers May Pay Under Tougher Liquidity Rules [Bloomberg]

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