Chums can’t regulate chums

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From the Guardian:

Lord Myners is savaged for "naivet?©" over his handling of Sir Fred Goodwin's £16.9m pension pot in a damning report by the Treasury select committee of MPs. The committee says that the City minister should have demanded that the former Royal Bank of Scotland chief executive be fired over his role in the bank's downfall, instead of allowed to retire with an enhanced pension.

The explanation?:

[T]he committee says Myners was too trusting. "We suspect that Lord Myners's City background and naivet?© as to the public perception of these matters may have led him to place too much trust in the RBS board"

I’ve said it before, and I will again: chums can’t regulate chums. That’s why Myners was the wrong man for the job. The committee seems to agree:

Among the committee's 45 conclusions is a warning that the review on the future of regulation by the FSA chairman, Lord Turner, is too complacent about the role of City pay in the current crisis. "Such a stance sends out the wrong signals and will only serve to encourage some within the banking sector to believe they have a green light to continue with some discredited remuneration practices as soon as the political and media spotlight moves away from them," the committee, chaired by the MP John McFall, says.


They put some of the onus for reform on Sir David Walker, the banker charged with reviewing corporate governance by the government. Despite arguing that they are "not convinced" Walker is the "ideal person" for the job, they call on him to tackle the "cosy club" that sits on banks' boards.

Precisely. When will we learn.

Send in Prem Sikka. That’s what I say.