Mr. Gerry Cross:

The Deputy has raised a number of related questions, so I will answer first before handing over to my colleagues who will answer different aspects of the questions.

The Deputy asked how things could have been different. As I said in my opening statement, we are seeking to respond to things we have seen in the past, to take account of international experience and to look forward in order to drive up standards. At the heart of our perspective is the importance of trust and confidence in the financial system. That is essential if the system is to function properly. We have put a holistic, integrated set of proposals on the table, aiming to contribute to the driving of those standards.

It is always very difficult to say whether things could have been different in the past, but we think that a set of proposals such as those we have made makes reoccurrences less likely and will help reduce the incidence of the types of events we have seen, whether prudential events, financial stability events or conduct events in the sector. They will do this in a number of ways. It is certainly the case, as we saw in the report on culture in banks from last year, that behaviours, standards and culture within financial firms must be driven upwards continuously. It is very important to clearly set out the standards we expect. It sounds simple to state that people shall act honestly and with integrity, or with diligence and due care.