The writing’s been on the wall for FSA’s Hector Sants for some time
March 16th, 2012
I am not surprised that Hector Sants, who has been chief executive of the FSA since July 2007 and joined it from Credit Suisse in May 2004, has resigned. He is to remain in post until June 29th to assure a smooth handover as the organisation moves towards its “twin peaks” regulatory model, an FSA press officer told me.
Sants, who as CEO-designate of the proposed successor body the Prudential Regulatory Authority was poised to become deputy governor of the Bank of England, may be stepping down because he is:
(a) scared that he might struggle at the a pre-appointment hearing at the Treasury Select Committee due to be take place by June, especially given his faltering performance in the Thatcher Room on January 30.
(b) concerned that the FSA’s shocking regulatory failures will increasingly come into the open in coming months. Its pre-crisis failure to regulate RBS is expected to be brought into sharp focus in a circa £3bn investor law suit against Fred Goodwin and RBS due to be heard in the High Court in June or thereabouts.
(c) recognised that there’s a limit as to how far the regulator can bend the truth to mask its past failures?
(d) taken a hint from the Conservative Party deputy chairman, Michael Fallon MP, who was fairly clear that he did not believe Sants should not get the PRA or BoE jobs when I spoke to him last month (See my exclusive Herald story Fallon moves to prevent Sants appointment as head of FSA successor body). There’s also a possibility that Bank of England governor Sir Mervyn King has mobilized forces against Sants…
(e) concerned that the FSA’s conduct regarding HBOS, and in particular its conduct relating to the ‘BoS Reading fraud‘, could further compromise his position once this becomes public. Perhaps Sants decided to make himself scarce before the proverbial hits the fan?
@zenstrategist Hector Sants failed to see it coming, failed to act when it happened & failed to fix it. An ideal candidate to join the #big4 auditors.
- To listen to my ground breaking half-hour interview with Dora Smith of the US radio station Talk Nation Radio, originally broadcast in December 2011, please click below:- UK Regulators Blind to Corruption in Banks: Journalist Ian Fraser on Financial Services Authority Failures
Here’s excerpts of the FSA press release announcing Hector Sants’ departure.
16 March 2012
FSA chief executive to leave organisation at the end of June
Hector Sants, chief executive of the Financial Services Authority, has announced his intention to leave the organisation at the end of June 2012 … In February 2010, Hector was asked, and agreed, to stay on as CEO in order to deliver the Government’s plans and to help achieve an orderly transition from the current system of regulation to the proposed future model.
Sants said: “Now is the right time to hand over to those who will deliver the long term goals of the future PRA and FCA … I am proud of what the FSA has achieved during my time in charge, through what have been incredibly challenging times.”
Adair Turner, FSA chairman, said: “Hector is a truly outstanding public servant of great integrity and has provided the FSA with dedicated leadership and focus through extremely turbulent times. I am very sorry to see him leave but I understand his decision, now that he has delivered what he set out to achieve. I’d like to thank him for all that he’s done.
Hector’s last working day in the office will be the 29th June 2012. Upon his departure, Andrew Bailey will take over Hector’s role as head of the Prudential Business Unit the part of the FSA mirroring the future PRA, Martin Wheatley will remain the head of Conduct Business Unit and future CEO of the FCA. Following Hector’s departure both will directly report to Lord Turner.
Short URL: http://www.ianfraser.org/?p=6329