Page last updated at 06:07 GMT, Saturday, 9 August 2008 07:07 UK

Leading Questions: Hector Sants

Advertisement

BBC business editor Robert Peston speaks to Hector Sants, the chief executive of City watchdog, the Financial Services Authority.

On this the anniversary of the start of the credit crunch he says the practice of rewarding bankers for taking foolish risks has contributed to the economic turmoil we face.

And he warns that if banks continue to reward their employees for doing dangerous deals, the watchdog will make sure banks and their shareholders are penalised.

Mr Sants also reveals that he has instructed the UK's banks to plan on the assumption that the current economic downturn could be as painful for them as the recession of the early 1990s.

SEE ALSO

Story Tools

BBC navigation

BBC © 2013 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.

Americas Africa Europe Middle East South Asia Asia Pacific