Finally, at last, we have some concrete evidence of what I and many others always knew and have been banging on about for years.
The FSA and its successor the FCA are constitutionally corrupt. Both outfits have in practice absolutely no democratic, legal or financial accountability whatsoever. They are Government, the police, the judiciary, the jury and the executioner all rolled into one outfit. They contravene a key principle of a democratic government system - the separation of powers.
And now we have proof that the whole construct was ill thought through - or was it?
Even though the appalling New Labour are no longer in power, their legacy and programme continues under the Financial Catastrophe Authority. If you wanted to nationalise money, banking and financial services generally, but not seen to be doing so, why not establish a 'regulator' with wide powers that is forever unaccountable to the people and its parliamentary representatives?
I doubt that the rent seeking and witless Tories will properly exploit these revelations, probably because they put in place the FCA - which I can tell you from personal experience is far far more arrogant and ignorant than its predecessor.
Update.
IanB makes a good point in the comments which is actually part of my contention. The FCA (and its associates - The FOS and the FSCS) are crony organisations. You only have to look at the revolving door between the FCA/The Banks/The Big Consultancies/Government to see that in action. The FCA is no more a Consumer Champion than I am Miss World.
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