Tony Blair might have acted to avert financial catastrophe if only the regulators had warned of the extent of the problems. In the absence of such warnings, the boom meant tough statutory regulation was virtually impossible.

That is his claim, at least, in this FT interview.

The Financial Services Authority has itself admitted its failings, in particular over its failure to stop the implosion of Northern Rock. Here is the FSA’s self-flagellating report from March on how and why it performed so badly.

But other authorities were aware of certain problems building up as long ago as late 2004, even if their warnings were wrapped in the usual fog of ifs and buts. Here is a link to a financial stability review by the Bank of England in December 04. Read more