As Britain’s favourite fiscal watchdog enjoys its biggest fine revenues since unreliable records began, the boss of the Financial Services Authority was last night anticipating a stratospheric bonus. It’s the just reward for the regulator’s “hands-off” form of policing of Britain’s most important industry, says the FSA boss.
Analysts predict that fine revenue for the first half of this this year could be upwards of £2 billion, as scandal after scandal emerges and with the FSA allowed to take a small incremental fine from each example of multi-billion dollar malpactice.
Each bank is fined around £1 for every £1000 it makes from interest-rate rigging and mis-selling and this “light-touch regulation” means the scandals can continue unabated and the FSA can guarantee a sustainable revenue stream.
Under City of London guidelines, the £2 billion revenue growth would entitle FSA boss a bonus of around £12 trillion.