Mr. Brian Patterson:

The principles-based approach put the responsibility for prudent management of their affairs onto the boards of management of the banks. Now ... with hindsight, that didn't work. I'm not arguing that point. It didn't work. And the enforcement actions, which were available to the regulator, moral suasion, capital requirements, etc., etc., either didn't work ... the moral suasion thing just didn't work because the banks weren't listening, yes, whereas in old God's time, they probably would have listened.