Twin Peaks Revisited…a second chance for regulatory reform
By Michael Taylor

With policy-makers on both sides of the Atlantic considering how to beef up the regulation of financial soundness, as distinct from consumer protection, the “Twin Peaks” approach is right back in fashion. The UK is now implementing a Twin Peaks approach.

Michael Taylor, central banker, academic and author, set the pace on this subject back in 1995 with the first CSFI report on “Twin Peaks”. In it, he correctly predicted that if prudential regulation were mixed with consumer protection, the former would lose out. In “Twin Peaks Revisited…a second chance for regulatory reform”, Michael Taylor has refined the argument to tackle the problem of “too big to fail” institutions.