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Pressure for 'light' regulation

Updated on 25 February 2009

By Siobhan Kennedy

The FSA chairman Lord Turner told the Treasury select committee there was political pressure to make regulation "a bit more light touch".

He said that affected the Financial Services Authority's scrutiny of banks like Northern Rock and HBOS, admitting regulators had failed to ask enough questions.

Lord Turner said they failed to spot the banking crisis because of problems with the system of regulation.

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