The Governor of the Bank of England replies to a Joint UKSA and ShareSoc letter about the Archegos fallout. The broad structure is defined. It is down to individuals to make sure it works – the weak spot.
In Dr Bailey’s response here, he sets out the Bank’s expectations on responsibilities: for directors to manage risk prudently and swiftly; for shareholders to hold directors to account; and for the Financial Stability committee to assess the macro-prudential risks associated with the non-bank financial system. UKSA will continue to look at how best to address the weak spot – many acting as one for the benefit of all.
Eumaeus, the website of Kevin Dowd (Professor of Finance at Durham University) and Dean Buckner (UKSA Policy Director), has commented extensively on the exchange here and in the Bank Underground Blog here.