Time to stop "demonising over-paid" traders, says Lord Turner

FINANCIAL SERVICES

Time to stop “demonising over-paid” traders, says Lord Turner

The Chairman of the Financial Services Authority, Lord Turner, has said that we need to move beyond the “demonisation of over-paid financial traders” and recognise the fundamental mistakes made by policy makers.

In a speech at the Mansion House on 21 September 2010, Lord Turner argued that the crisis had many causes, including "absurd bonuses for excessive risk taking" and "an explosion of exotic socially useless product development". But underlying these problems were prudential rules and an entire philosophy of market regulation which failed to identify and address the dangers of excessive leverage, and which too confidently relied on supposedly efficient and rational markets always to produce good results.

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A full copy of the speech is available on the FSA web site at www.fsa.gov.uk/pages/Library/Communication/PR/2010/145.shtml.

Listen to Lord Turner’s interview with the BBC’s Robert Peston at www.bbc.co.uk/news/business-11386464.