Will FSA report impact banking jobs in London?

The Financial Services Authority (FSA) has released its annual report for the year 2009-10.

In it, the watchdog outlines its performance against the priorities it set out in its Business Plan, along with its own objectives, in news that could interest people with banking jobs in London.

Lord Adair Turner, chairman of the FSA, claimed that over the past three years, the approach the group takes to supervision and regulation within the banking and financial services sector has been transformed.

This has included the introduction of stress testing, accounting reviews, detailed liquidity assessments and reviews of remuneration policy.

It also suggested to be pursuing claims of market abuse more aggressively, while adopting a campaign of "credible deterrence".

Mr Turner said: "The measure of the effectiveness of our new regulatory and supervisory approaches will be whether in five or ten years'' time potential problems are prevented."

Elsewhere, Geoffrey Wood, professor of economics at Cass Business School, has said that the governments of each European country should have the power to decide what to do when one of their own banks is failing.