FSA decision on Johnny Cameron doesn't add up

By Greig Cameron on May 19, 10 10:49 AM in

I'm sure I am not the only person scratching my head in wonder at the punishment delivered to Johnny Cameron (no relation) by the Financial Services Authority.

The full details can be read here with the FSA statement here but basically the former head of Royal Bank of Scotland's investment banking operation has agreed not to work full-time in a bank or insurer ever again.

As a result the FSA is not going to pursue any further action against him. So basically he has been cleared of any wrong doing, did not admit any guilt and was not fined.

Oh and the independently wealthy 55-year-old can still work in lucrative part-time consultancy roles.

Now what I am not going to do here is have a go at Johnny Cameron. Like many bankers he seems to have prospered during the boom years but been undone when the house of cards began falling. He certainly wasn't the only one who didn't see it coming.

With this investigation finished he is now free to live his life without this cloud hanging over him so in that sense good luck to him.

But the decision once again shows up the rather arbitrary regulatory nature of the FSA. Let's be honest this is a pretty light slap on the wrists and not much more.

For example the FSA fined a mortgage broker £17,500 last month and banned three others for exposing their firms to financial crime (read the details here).

Former Northern Rock executives David Baker and Richard Barclay did also not get off anywhere near as lightly as Cameron has in this case.

I dread to think of the number of hours talented, bright and well paid individuals spent working on the investigation to get to this rather wishy washy outcome.

I'm not advocating a witch hunt of individuals (as happened with Sir Fred Goodwin) as the sector really does need to move on and learn lessons from what happened.

But with further probes ongoing there is no way Johnny Cameron will be the last person reprimanded over the global financial crisis.

This was not a situation caused by a small number of people so it will be interesting to see which other names crop up in judgements in the coming months.

But then again what is the point of any investigation if no realistic sanctions are taken at the conclusion?