FSA: Medium touch

London’s «light touch» regulation is about to put on weight. Lord Turner, the new chairman of the Financial Services Authority, the UK regulator, has admitted that past supervision was done “on the cheap”. In future, more staff will supervise institutions more closely and at more cost. It’s the right approach. The new approach will address more decisively two long-running practical problems and a more fundamental issue. The first of the practical problems has been too few staff. Compared with r...