The former chief executive of Singer & Friedlander is preparing to take the Financial Services Authority to judicial review over its refusal to hold an inquiry into the failure of the Icelandic banks. Tony Shearer, who led the 100-year-old City investment bank before it was taken over by Kaupthing in 2005, accuses the regulator of not doing enough to prevent the crash that cost the British taxpayer £8bn and left hundreds of UK savers out of pocket. . .
Mr Shearer has written to Gordon Brown, the Prime Minister, Lord Myners, the City minister, and Lord Turner, chairman of the FSA, asking for a formal inquiry into why all the warning signs about the instability and potential criminal activity at Kaupthing were ignored. . .
However, the FSA has washed its hands of responsibility for the bank's activities in London before the crash, claiming that it was powerless to act when the home regulator in Iceland was meant to be monitoring Kaupthing.
Lord Turner has told Mr Shearer that he sees no need for a public inquiry, adding "there is nothing further to be gained from further exchanges on the subject of Icelandic banks and our past regulation of banks generally".
Hundreds of UK-based savers with Kaupthing in the Isle of Man and Landsbanki in Guernsey have still not been fully compensated for their losses, while dozens of British councils, hospitals and charities are also waiting in line with commercial creditors.
"The papers have reported that you have called for the FSA to carry out a special investigation into Goldman Sachs," Mr Shearer wrote to Mr Brown. "Will you now call for the FSA to carry out and publish such an investigation into the activities in the UK of Kaupthing and the other Icelandic banks? 09-May-10.