Regulator quietly shelves inquiry into banking culture. Another victory for the bank lobby

Chris has it all explained by a banker...

SOURCE BBC NEWS: Banking culture inquiry shelved by regulator FCA

The FCA had planned to look at whether pay, promotion or other incentives had contributed to scandals involving banks in the UK and abroad. The Treasury denies involvement in the decision - which some commentators have suggested was politically motivated. Banks around the world have faced huge fines from regulators for their involvement in numerous scandals. In May the news agency Reuters calculated that 20 global banks had paid £152bn in fines and compensation to customers since the 2008 financial crisis. The decision to drop the inquiry comes six months after FCA boss Martin Wheatley - who was originally hired because of his reputation as a tough regulator - was effectively sacked by Mr Osborne following two tumultuous years in the role. Many in the City had found Mr Wheatley's approach too combative and raised concerns about some of the language he used in reference to the banking industry. Percival Stanion, head of multi-asset strategies at Pictet Asset Management, also suggested that it was "no coincidence" that the investigation was being dropped at a time when HSBC was reviewing whether to keep its headquarters in London. HSBC has been a vocal critic of the bank levy, which Mr Osborne reduced in his summer budget following the general election. This will be seen by many as further evidence that regulators and the government have decided to take a softer line with the banks and bring the "banker bashing" era to a close.

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