It’s awkward enough having to hand back one leaving present from colleagues, let alone two. So I think we can all agree that, this time, Hector Sants will stick with his decision to resign as the UK’s chief financial regulator.
Mr Sants will step down as chief executive of the Financial Services Authority in June. The first time he announced his resignation – in February 2010 – he was persuaded to reverse the decision four months later by the incoming Conservative government. He agreed to preside over the transition to a new Bank of England-led regulatory regime (plans for which he’d opposed, as did I), in the expectation of becoming deputy governor. But things have changed.
In 2010, I wrote that Mr Sants had chosen the three worst years in history to run a regulator, taking over as chief executive just before the run on Northern Rock in 2007 and presiding over the watchdog in a year in which the rest of the UK banking system came close to outright collapse. I also wrote that his premature departure would destabilise the FSA. The first judgment still stands. The second – not so much.