Heading up a bank under UK law vs prudential risk assessments

Current legislation for all UK banks means that every director, controller or manager must be a fit and proper person to hold the particular position which he holds. The regulator may test this person in numerous ways.

Does everyone consider themselves to be a fit and proper persion? Is this the root problem behind why the banking sector is in serious trouble - and if so, how can this be legislated against?

The nub of the reforms now required is: (a) the protection of depositors; and (b) promotion of the UK economy by ensuring that retail deposits are used to finance UK businesses and house purchases. It is unacceptable that protected deposits are used to fund investment banking speculations, credit default swaps and such like. These may be profitable but are akin to gambling with other people's money.