Yes, I am comparing the FCA to a reptilian monster

Problems regrow with the new financial services regulator.

Monday’s handover of responsibility for UK financial services regulation from the FSA to the new Financial Conduct Authority (FCA) and the Prudential Regulatory Authority (PRA) had a touch of Hercules’ second labour about it.

For the less classically inclined among you, that’s the one where Hercules lops the head off the Lernaean Hydra, only to find two heads growing back from the stump. And while I don’t intend to be malicious in comparing our new regulators to an aggressive reptilian monster, the multiple heads part at least is quite apt.

Because as well as the obvious duality of the new status quo – the PRA will supervise lenders as an arm of the Bank of England while independent agency the FCA will concentrate on ensuring good behaviour among the same pool of companies – there’s also a serious split in priorities for the new bodies.

Commenting on this week’s changing of the guard in finance, the FT’s Brooke Masters called the sector that the FCA and PRA were opening their doors to “reviled and weary” – two well chosen words.

Reviled because, as was pointed out in a report by KPMG last week. reputational issues and the restoration of consumer trust are set to be the biggest challenges faced by lenders in the months and years to come. After all, it was disappointment over the old FSA’s failure to avert the boom and bust of the late 2000s that led to George Osborne announcing the new regime back in 2010.

Weary because, having experienced a more severe drubbing in 2008 than most of the world’s financial centres, and with a UK economy still barely hovering beyond the grip of recession, financial institutions of all kinds are desperate for room to grow.

On the one hand, the new regulators have consumers (and those who rely on their votes) expecting a bloody-knuckled champion, and banks begging for a pair of watchdogs that won’t drown them in twin torrents of red tape.

The situation is summarised nicely on the FCA’s home page, where a photograph of a woman on a British high street, captioned “Making sure consumers get a fair deal” sits alongside an image of a confident-looking businessman, captioned “Making markets work well”. The consumer and the businessman are facing in different directions.  

Photograph: Getty Images

By day, Fred Crawley is editor of Credit Today and Insolvency Today. By night, he reviews graphic novels for the New Statesman.

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Commons confidential: The nuclear option

Hunt's six day week, Cameron's missing tweet and growing tensions within Labour.

It’s UN blue helmet time for the deputy leader Tom Watson as he struggles to keep the peace between Labour’s warring factions.

The burly veteran of the uprising that toppled Tony Blair is brokering an armed truce. His strategy, I’m told, is to persuade both sides to hold fire. Rebels remain in the bunker and Corbynistas are moving to change party rules. Either pulling a trigger would send the other nuclear.

Tensions between the Corbyn and McDonnell camps fuel rumours the veggie Jeremy may later step aside for carnivorous John. Watson, says my snout, believes Labour would be ungovernable if MPs locked the left out of any contest.

John Mann, caught glancing to check whether cameras were rolling ahead of his Brawl in the Hall with Red Ken, has posturing form. The Bassetlaw bruiser and his former colleague Denis MacShane earned blistering rebukes for “glib evidence” and “appearing supremely confident of the rightness of their positions” three years ago as witnesses at a failed employment tribunal that attempted to find “institutional anti-Semitism” in a University and College Union-backed Israel boycott.

The 45-page judgment noted: “When it came to anti-Semitism in the context of debate about the Middle East, [Mann] announced: ‘It’s clear to me where the line is . . .’ but unfortunately eschewed the opportunity to locate it for us. Both parliamentarians clearly enjoyed making speeches. Neither seemed at ease with the idea of being required to answer a question not to his liking.”

Gobby Mann and Shoot-From-the-Lip Livingstone were made for each other.

Many thanks to the reader with a long memory who reminded me this column noted in June 2009 how Jeremy Hunt was a six-day weeker, after his Surrey office informed Haslemere Rugby Club he didn’t work Sundays. Now he’s Health Secretary, screaming about a seven-day NHS in England, I’d be happy to update his availability should Hunt wish to get in touch. Emails and calls are answered all weekend.

Labour holds no monopoly on anti-Semitism. A former Labour MP recalled asking an esteemed Tory grandee, still an MP, over dinner whether Livingstone should have apologised for likening a Jewish reporter on the London Evening Standard to a concentration camp guard. “Oh no,” sneered the prominent Con, “the Hebs are getting above themselves.” The term “Hebs” is, apparently, posh for Hebrews. You learn something nasty every day.

Imagine the tweet the experts at No 10 could have prevented the football-crazy Cameron from sending: “As a keen Aston Ham fan I congratulate Leicester Town on winning the FA Cup.”

Kevin Maguire is the associate editor (politics) of the Daily Mirror

Kevin Maguire is Associate Editor (Politics) on the Daily Mirror and author of our Commons Confidential column on the high politics and low life in Westminster. An award-winning journalist, he is in frequent demand on television and radio and co-authored a book on great parliamentary scandals. He was formerly Chief Reporter on the Guardian and Labour Correspondent on the Daily Telegraph.

This article first appeared in the 06 April 2016 issue of the New Statesman, The longest hatred