News release: “The Financial Services Authority (FSA) has today published the Turner Review of global banking regulation. Lord Turner, chairman of the FSA, was asked by the Chancellor of the Exchequer to review the events that led to the financial crisis and to recommend reforms. The Review identifies three underlying causes of the crisis – macro-economic imbalances, financial innovation of little social value and important deficiencies in key bank capital and liquidity regulations. These were underpinned by an exaggerated faith in rational and self-correcting markets. It stresses the importance of regulation and supervision being based on a system-wide “macro-prudential” approach rather than focussing solely on specific firms.”

• The Turner Review: A regulatory response to the global banking crisis, March 2009
• “This review has made a wide set of recommendations, some of which can be considered formal FSA proposals for action, but some of which need to be deliberated further at global or UK level. The FSA Discussion Paper DP09/2 – A regulatory response to the global banking crisis, which accompanies this Review, covers the formal proposals, and invites feedback from interested parties in line with standard FSA procedures. Turner Review Press Conference: Speaking notes and slides for the press.
• Related postings on financial system