What Brown admitted to was not foressing how interconnected the banks had become. More else no else did either. Certainly not the Conservatives, who lightened regulation in the first place. The FSA was at least an attempt to oversee the big banks. Problem was, it was toothless. Just as the Bank of England was asleep on the job and toothless.
// Mr Brown said: “We set up the FSA believing the problem would come from the failure of an individual institution. That was the big mistake. We didn’t understand just how entangled things were.”
The crisis in 2008 saw the rapid spread of problems from one bank to another because of how interconnected the global financial system had become.
The former prime minister also said that the opportunity to secure a global agreement on financial regulation had probably passed.
“I do believe we’re going back to a race to the bottom,” he said, referring to countries competing to have the lightest regulation. //
http://www.telegraph....mistake-on-banks.html
So this is really a warning that it has gone back to business as usual, and the same mistaKes are being repeated. Yet the press are reporting it as an addmission Rather than a warning.
So, no, not guilt, more fustration that the opportunity to reform the banking system is being squandered.
Remind me, How many City donations did the Conservatives get Before the election?