In his speech at the Lord Mayor’s City banquet, Lord Turner insisted the momentum for financial regulatory change must not slow, and stressed the importance of global changes to bank capital and liquidity requirements. He said banks must concentrate on their core business and purpose, work to restore trust and should question any business that falls outside this. He also stressed many parts of the financial community were not broken and did not need fixing. But he recognised some types of trading were not necessarily good, and a larger financial system not necessarily better. He spoke about FSA’s initiatives on bonuses but said aggregate levels of bonus amounts could also be important for rebuilding capital. He commented on reaction to his interview in “Prospect” magazine (see FReD This Week 28 August) and confirmed he had been quoted correctly and stood by his views that some institutions’ activities had been “socially useless”. He distinguished financial markets from other markets that thrive on consumer whims and indulgence and said the mindset that innovation was good has had to change, and it has done so.