The Turner review - Recommendations to reform the banking industry transcripts

Graham O'Connell - Turner review overview video transcript

If we look at London's position in the global markets, London's success has been built on a reputation for financial stability and sound regulation. We have faced some very difficult times recently in the global markets and with the crisis over Northern Rock and the collapse of Lehman Brothers - conditions in London have been very tough indeed. But the Turner Report signals a way forward for us and returns to some core banking principles around better management of capital, management of liquidity and risk management, particularly around trading risks. But at the heart of all of this wrapped together is the fundamental importance of corporate governance and senior management discharging their responsibilities of oversight and control of institutions that operate in London. It doesn't just stop with London - our banks have footprints all over the globe, presence throughout Europe and Lord Turner has indicated a real desire to work more closely with our European colleagues and also globally with the Unites States and regulators right across the world. That's going to mean some very hard work for the regulators themselves and for our clients to face off to these regulators, because its going to mean a period of intense scrutiny and a more holistic view of managing risk, not only in this country, but considering the knock on effects of how capital and haw liquidity is properly managed so that sustainable growth can be delivered across a number of fronts.

Laura Cox - Turner review hedge fund/offshore video transcript

Although Lord Turner's report focuses primarily on banks and liquidity concerns, Hedge funds haven't escaped his notice entirely. He recognises that hedge funds are quite different from banks in many important respects, but still considers they are a really important part of the overall financial services system and the way that we manage systemic risk. He hasn't called for further regulation of hedge funds in the UK which I think is a good news, but in the longer term he has called for better global regulation, particularity of offshore financial service centres, where many hedge funds are based, and I think we are quite likely to see some further disclosure requirements in the UK for hedge funds, particularly the larger hedge funds. I think the real question is how we are going to achieve global regulation, and in the hedge fund space an important part of that is addressing offshore financial centres, and getting them to come up to the standards of international regulation. There is already a lot of pressure on offshore financial centres in the area of tax havens and I think we'll only see that continue in the future.