Financial Conduct Authority Interim Chief Executive Tracey McDermott said the FCA’s stance against banks has not changed despite withdrawing a bank culture probe at the UK Chancellor’s request.
Three high-profile probes in the banking industry with the objective of helping shoot down possible future PPI mis-selling immensity scandals in the UK was shelved. Two other probes, which would also enlighten the regulator on preventing massive Libor and Forex manipulation-wide scandals, were also withdrawn.
Analysts were quick to compare McDermott and Martin Wheatley, the former FCA Chief, and each one’s approach against UK’s banks.
Wheatley’s approach to banks saw huge fines against banks before, during and after the passing of scandals. Wheatley said in an interview that cracking down on UK’s banks would mean “shooting first and asking questions later.”
Analysts also remember Wheatley for raising the FCA’s image as a protector of consumers during the height of PPI claims in 2013.
Wheatley was removed from position following the UK Chancellor’s accusation that his leadership “undermined the UK reputation for regulatory stability and competence.”
According to the managing director for Edinburgh investors SVM Colin McLean, the UK government needed to sell its controlling stake in RBS and will need the banks help. The “softening” makes sense when this move is taken into perspective.