This Week in the Fate of the FSA

As I said on May 20, "if you don’t like the role of the UK’s Financial Services Authority, just wait a bit. It changes weekly!"

Until today, the most recent of many statements coming out of the UK concerning the FSA's fate was that while it would remain alive, it would be stripped of its enforcement powers. The UK's new coalition government stated on May 20 that the FSA’s prosecutorial power to go after offenses such as insider trading and market abuse would be combined with the powers of the Serious Fraud Office and the Office of Fair Trading to create an economic crime agency.

But wait! Even this latest plan is subject to change, as the Guardian is now reporting that while the government still favors that plan, it faces "potentially insurmountable hurdles in raising enough money to fund a reorganisation. Ministers are warning privately that the government's top priority is reducing the national deficit and that, in the circumstances, the agency scheme will have to be cancelled if it costs too much."

So, once again: stay tuned for the next episode of "This Week in the Fate of the FSA."