The FSA is admitting that it made mistakes in regulation that may have made a difference to the severity of the banking failures. Yeah, right.
The only way that the FSA 'regulation' could have had a chance of preventing the banking crisis was to regulate upwards, to the Bank of England the Treasury and The Chancellor of the Exchequer.
Once a government with a monopoly of money starts on the unsound money route the country is doomed. The FSA would have had to stop Gordon Brown from printing money, it would have had to make the Bank of England ignore the spurious CPI price index measure and make it take more heed of broad money supply and it would have had to stop the Treasury sanctioning profligate government spending and off balance sheet borrowing.
Financial services 'regulation' does not work from the top down. It has to work from the bottom up. We, the people, have to make sure that the governments we elect know the principles of sound money and macro economic management and how to spend our money wisely and miserly.
We failed with New Labour.