The chairman of the Financial Services Authority (FSA), Adair Turner, has today told the parliamentary treasury committee that there will be no legal carve up of the industry in the wake of the biggest financial crisis in living memory.
However banks will be assessed on the level of risk they take and generally speaking, the bigger the risk, the more capital will be required to cover the risks.
Turner dismissed suggestions that banks should be limited by size, saying that he had warmed to the US treasury proposals where “we should think about not an absolute limit on size, that would be very difficult to achieve, but a sliding scale of capital requirements which simply require higher capital requirements from large banks or from banks involved to a greater extent in risky trading.”
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