"Sorry" about failures

I refer to Hector Sants' speech of 15 October 2008.

The lessons of the Northern Rock should have been learned a year ago. I understand, although I am not certain, Ron Sandler's business plan which was accepted by the Treasury and the FSA contained an assumption that house prices would not fall!

Since then the FSA has overseen rights issues for Bradford & Bingley, HBOS and RBS all of which were plainly insufficient and the documentation did not reflect the severity of their positions.

The FSA also made a statement that HBOS had an "exceptionally strong balance sheet". If they knew this was not true it amounts to market manipulation - if they did not, it is negligence. Mr Sants says that they should have made sure the bank directors understood their business model. By this he is admitting that, even after the Northern Rock, the Regulator still did not understand the banks' business model and, therefore, could not regulate.

I hope the FSA understand the business models of the insurance companies!

Finally, who else would be allowed to get away with a second apology with no sanction? What about their jobs and bonuses and the 'golden parachutes' given to departed employees?