Green Party calls for better regulation of financial system

The Green Party wants to see more powers to regulate the financial system.

The call comes in the wake of the resignation of Financial Regulator Patrick Neary. He announced his intention to step down from his position last night.

The decision was made following the completion of a report into the handling of undisclosed loans to directors at Anglo Irish Bank.

The report blamed a communications breakdown which resulted in a failure by the regulator's office to take action.

Green finance spokesman Dan Boyle said lessons must be learned from the mistakes.

“The regulation system that does exist should be one that is feared by the financial institutions-that they should be forced by their own behaviour to do the right thing by fear of what the consequences would be if they didn’t.

“It is quite obvious that hasn’t been the situation in the past, so we need effective legislation and we need people within the regulatory authority who give the impression that they are prepared to take the necessary action,” he said.