The head of Britain's financial control body, the Financial Services Authority (FSA), Thursday demanded, according to dpa, profound changes to the "seriously deficient" regulatory system if a repeat of the current crisis in the banking sector is to be avoided. Adair turner, FSA chairman, recommended that banks should be forced to build up capital during good economic periods to enable them to deal more easily with an economic downturn. His remarks, in a BBC interview, came just days after the government approved a massive scheme to insure banks against so-called toxic debt, which according to estimates could total 200 billion pounds (274 billion dollars). "We cannot predict what the losses will be," Turner said. However, the banking system would not collapse "in the sense that the authorities will make sure it will not." Turner said bankers, regulators, central banks, finance ministers and academics across the world shared the blame for failing to identify the risks which had been building in the financial system for a number of years.
