The attack formed John Greenway’s final parting shot after almost two decades in the post, but is not the only part of the Government’s policy to come in for criticism.
Greenway, Conservative MP for Ryedale, is standing down at the upcoming Election due to boundary changes and local party differences, having represented the Yorkshire constituency since 1987.
He believes the Government’s manifesto plan to re-mutualise the state-owned bank, before yet another expected demutualisation, would be a mistake and a further kick in the teeth for its shareholders.
“If you are a Northern Rock shareholder you’re feeling pretty down now, and it’s crazy that the Government wants to do the same thing again” he said.
Greenway feels the regulation of banks and other financial services needs to be completely overhauled, arguing that its reputation has been stained along with that of the banking sector.
“The FSA has to be reformed in one way or another,” he said.
“We had this huge bank fail which the public see as a mess, and I believe as a result we have to put banking regulation back to Bank of England.
“There needs to be a fresh look at what this regulatory framework is for as people felt let down by the regulator, so we have got to get a grip of what regulation is fair.
“The public view isn’t just tarnished in terms of the banks, they actually have the same view of regulator.
“They want to know that if they give their money to an institution its safe (from a bank failure), and that the institution in which they put their money in is sound financially,” he added.
As chairman of the body which sought to provide a voice between Parliament and the insurance and financial services industry, Greenway thinks this body has helped him identify how to solve those regulatory problems.
