Mr. Peter Nyberg:

In the view of the commission, it was true. There were quite a lot of breaches of governance rules, which the Financial Regulator generally thought were important. That was particularly the case in the two prime problem banks. I think it is fair to say the commission read the Honan report as giving the message that the regulator at times noted it - it was not unknown - but to a very large extent it started corresponding, sending letters back and forth, and it stated what the banks should do, but it did not check that they did it. It did not force the banks to do it, which it could have, using less pleasant methods than it can use if it thinks something is really important.