FSA needs more staff and more money?

Let's get the facts straight here, the BofE regulated banks quite well for a long time, in 1997 the task was handed over to the FSA along with the 740 BofE regulatory staff. Same people, different office. The main problem with FSA style regulation is that the 'activities' are regulated, not the institutions themselves as was the case with the BofE. The banks then decided to pursue 'activities' which were not regulated and made pots of money out of said 'activities'. The FSA couldn't do anything but watch the festering mass of fancy financial instruments, not that it was looking because these instruments were not regulated and therefore not their problem gov. To make matters worse this style of regulating meant that banks could sell whatever took their fancy as long as the 'compliance department' gave the nod. Regulation is bust, not fit for purpose. Strict supervision is the only way to stop this happening again, the FSA is incapable of doing that, at any price, because it is run by bankers.

http://www.ft.com/cms/s/0/171bf9aa-9fd2-11dd-a3fa-000077b07658.html