FSA to sit in on City board meetings

The regulator has attended the meetings of large banks and other "high risk" firms for the past three months, the Guardian reports. Chief executive Hector Sants describes the approach, which involves the FSA sitting in on board, sub-committee and divisional meetings, as "eyeball-to-eyeball" regulation. Investors are concerned FSA staff could be regarded as shadow directors, exerting influence with no accountability to shareholders, the paper said. In turn, this could drive decision-making away from the boardroom and reduce overall accountability, sources said. An FSA spokesman s...