Hector Sants, chief executive officer of the U.K. Financial Services Authority, said moving financial regulation powers to the Bank of England may make the job of governor too big for one person.
“We could be concerned that the operational task given to the governor as an individual -- and of course that will be a new governor by the time these powers are actually fully in place -- will be just too great,” Sants said in a BBC interview today. “The risk is more that operationally this is going to be too great for one person to manage.”
Sants will step down from his post at the end of this month after leading the regulator through much of the global financial crisis. He also said the run on Northern Rock Plc in 2007 could have been prevented if the government and the Bank of England had taken his advice to provide liquidity support to Lloyds Banking Group Plc to buy the lender.
“I think that would have made a difference, it would have avoided the queues at Northern Rock and would have changed the general climate in relation to the old building society sector that had moved into the banking sector,” he told the BBC.