Follow your own advice – Dunfermline MP tells FSA
March 27, 2009 11:10 AM
Originally published by Scottish Liberal Democrats
Originally published by Scottish Liberal Democrats
The Financial Services Authority has been told to follow its Chairman's own advice and reduce the capital requirement for the Dunfermline Building Society.
The capital requirement rules are being brutally enforced by the FSA which requires the Dunfermline Building Society to set aside a reported £20-30million in additional reserves. Yet the Chairman of the FSA, Lord Turner, last week in his report on the reform of the banking system recommended a more flexible approach that requires less to be set aside during times of economic difficulty.
The Dunfermline Building Society's MP Willie Rennie said:
"The FSA seems to want the Society to save for a rainy day when there's a thunderstorm outside and a huge hole in the roof."
"Lord Turner should follow his own advice and relieve pressure on the Dunfermline. A capital requirement of 8% is ridiculously high especially when the society is in difficulty.
"Lord Turner suggests that 4% during times of economic difficulty would be more appropriate. That's welcome thinking but I want to know why it can't be implemented now."
Notes:
1. Lord Turner's report:
http://www.freshfields.com/news/mediareleases/mediarelease.asp?id=1755
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