Leading Questions: Hector Sants

BBC business editor Robert Peston speaks to Hector Sants, the chief executive of City watchdog, the Financial Services Authority.

On this the anniversary of the start of the credit crunch he says the practice of rewarding bankers for taking foolish risks has contributed to the economic turmoil we face.

And he warns that if banks continue to reward their employees for doing dangerous deals, the watchdog will make sure banks and their shareholders are penalised.

Mr Sants also reveals that he has instructed the UK's banks to plan on the assumption that the current economic downturn could be as painful for them as the recession of the early 1990s.