FSA must not throw 'suffocating blanket' over mortgage market-CML

In a speech to the CML conference, he said there was a balance to be struck between protecting consumers and casting lenders in an inappropriately paternalistic role. “In our view the main purpose of regulation should be to ensure a sustainable risk management framework for financial businesses, and a sensible operating framework between businesses and their customers. It should not attempt to wrap consumers in cotton wool and make borrowing risk-free.” He criticised regulators for a damaging view of lenders and intermediaries as “sweetshop owners” or “drug-dealers at the school gate...