Financial Regulator admits failure on banking

THE Financial Regulator put its hands up yesterday admitting it failed in its duty to protect the banking sector. It said also it was too slow to react to cool down the property bubble and promised a much tougher regulatory regime.

“In retrospect, it is clear the actions we took were insufficient and were not taken early enough,” said Financial Regulator chairman Jim Farrell at the publication of the group’s 2008 annual report in Dublin.

He stressed that a much tougher hands-on policy with the banks was already in place with four regulatory staff working practically full time in each of the major banks.