The governor of the Bank of England furiously denied criticism that he was slow to change the city's previous regulatory role.
Andrew Bailey was head of financial regulator when the high-risk bond project collapsed two years ago.Nearly 12,000 people invested £ 236 million in London Capital & Finance before taking action.A report last year said regulators had failed to oversee the company effectively.Report author,

former Court of xo Appeals Judge Elizabeth Gloster, told Congress last week that the slow internal reforms at the FCA were not an excuse for what happened to investors in LC&F.Mr Bailey told a parliamentary committee on Monday he strongly disagrees with her views.In particular, he rejected the suggestion he had been among executives, asking not to be included in the report's conclusions, saying: "Right now I am quite angry and so am I".
Mr Bailey said Lady Justice Gloster described the regulator as "Broken machine"

She advised you that if we told the officer to pull up the socks, the problem would be gone," Bailey told the Treasury Committee.She reached a point in the report that suggested it might be a mistake to make a program of change that I basically disagree with," he said.He said regulators at the time had no way to investigate concerns raised by investors from the 200,000 calls a year received by the public.The Financial Services Compensation Scheme (FSCS) said last year that the vast majority of people investing in LC&F will not be eligible for compensation.