FSA misjudged banking crisis - papers

Just days before the rescue, FSA officials, under chief executive Hector Sants, believed the most the banking system would require in emergency equity was £20bn and insisted their problems were to do with a lack of liquidity rather than low levels of loss-bearing capital. In fact by the time the crisis was over, the total equity raised by the banking sector came to around £100bn, writes the Telegraph. The City watchdog's failure to identify the key cause of the financial crisis was the culmination of more than a year's lax governance of banks' capital levels, and raises questions abou...