Following Ian Hannam's extraordinary FSA fine for blagging a bit too much, it is clear the FSA is losing the plot.
Whereas a few years ago 125% document lite mortgages were handed out under the FSA's watch, we learn the new mortgage code means 5 million Brits will soon be unable to remortgage when their deals expire because of new new Horse-Bolted regulations coming in will deem them homeless. Peer to peer lending, credit unions and wonga.com are the new shadow banks which is where the FSA should be paying attention but it prefers in tackling a bit of blagging resulting in people's lives being destroyed and wealth creators wondering what is the point? Regulation has gone mad.
Yes, the FSA have been battered because they were too scared to regulate the big banks and concentrated on the little people (a bit like HMRC, the police, the list goes on ...) we are in an era where the big boys (Hannam included) are being attacked for a few lines in an email.
The upshot of course is dark corners are now back in vogue. I am being inundated with requests to join Private Clubs with no CCTV or any surveillance (cash only entrance fees and no names). The reason is we all like to talk and a bit like during prohibition, honest people eventually say enough is enough.
Having had the privilege on a number of occasions to witness the man in action (he is a cross between Bear Grylls and Ena Sharples), he has created much wealth to this country. His crime was a bit too much blagging - he didn't set out to rip innocent people off or money launder and the fine is excessive.
Private clubs are the new black.
Private Clubs bursting (standard)
David Cameron losing the plot (reuters)
FSA (with Nick Clegg's help) to ban selling completely.