Felix Salmon » Blog Archive » Annals of regulatory incompetence, FSA edition | Blogs |#comment-3324: "Now forgive me but isn’t the FSA supposed to be operating in the real world in which things are just not about pure mathematics? A world in which risk managers hide risk, moral hazard is rife and magicians do, er, magic. Isn’t that sort of the entire point? If it was all about the maths then we wouldn’t have the FSA, we’d use someone like the EdExcel examiners to give banks marks out of a hundred at the end of term."
Not only are they baffled by tricksters they don’t have a basic grasp of insurance contracts, some insurance broker sold them D&O insurance which supposedly covered them for misfeasance! Last week Turner, or was it Sants?, said providers of payment protection insurance had been treating customers badly by changing the terms of the policy, even my 14 year old daughter recognises that annually renewable insurance can be varied otherwise the whole thing could fall apart when millions of people lose their jobs!
Regulators suffer from myopia, they are not the solution to our probems Mr Obama, they are the cause.
As Thomas Sowell said:
“It is hard to imagine a more stupid or more dangerous way of making decisions than by putting those decisions in the hands of people who pay no price for being wrong.”
Was it the Ace of Hearts?
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