Global regulation "found wanting"

Sun Jul 6, 2008 11:57am BST

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AIX-EN-PROVENCE, France (Reuters) - Weaknesses in the regulation of the global financial system have been revealed during the recent credit crunch, the chairman of the Financial Services Authority said on Sunday.

"Throughout the world, regulation has been found wanting," Financial Services Authority Chairman Callum McCarthy told delegates at a business conference in southern France.

"In very many countries there have been examples of regulatory inadequacies," he added.

McCarthy also highlighted problems with risk management systems of leading banks such as Citigroup (C.N), Societe Generale (SOGN.PA) and Royal Bank of Scotland (RBS.L).

(Reporting by Sudip Kar-Gupta, Editing by Swaha Pattanaik)

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