Fri, 18 Jun 2010
There is too little detail in the new UK plan (also here) to abolish the Financial Services Authority (FSA) by folding it into a subsidiary of the Bank of England. But the more I think about it, the more it looks like the pre crisis Ireland model.
If imitation is the sincerest form of flattery, Ireland must be feeling quite flattered right now. It is a different matter that the Irish Central Bank itself in its post mortem of the crisis now thinks that their model had nothing to commend it:
Though few would now defend the institutional structure invented for the organisation in 2003, it would be hard to show that its complexity materially contributed to the major failures that occurred. (page 42)
The grass is always greener on the other side!