news bulletin – answers

UK regulators get tough on City

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1. The UK’s financial watchdog, the Financial Services Authority, said a new cadre would ask tougher questions.
2. Analyst Russel Jones is concerned they’ll go too far in the opposite direction.
3. "I think there’s going to be a lot of rather desperate politicians over the course of the next 12 "months.
4. "They tend to look for scapegoats and the danger is that we end up with a financial sector which is too highly regulated."
5. "That’s not necessarily a good thing, in fact historically, it’s always tended to be a rather bad thing."
6. The FSA decision to ban short selling was seen by some as being heavy handed.
7. "The volatility in markets over recent periods has been so traumatic."
8. "It’ll be exerting much less of an influence on financial markets."
9. "Hedge funds are something of a scapegoat in the current environment and I think they will get hit quite hard."
10. Wealthy investors are cutting back exposure to hedge funds after disappointing returns.