I have written many times on this site about the failure or Gordon Brown's tripartite regulatory system (imposed on the City in 1997).
It is interesting to see that others have also now realised that this system was a failure, and played a large part in the recent banking crisis in the UK.
The Telegraph reports that US treasury secretary Timothy Geithner said:
"Remember your colleagues in the UK ran a strategy for a long time called light touch approach to financial regulation that was designed consciously to pull financial activity from New York and Frankfurt and Paris to London. That was a deeply costly strategy for financial regulation."