Sir Nigel Rudd agrees to second term as BAA chairman

Corporate grandee Sir Nigel Rudd has been asked to stay on for a second three-year term as chairman of BAA. Sir Nigel took on the chairmanship of the UK's airports operator, owned by Spain's Ferrovial group, in September 2007, and has overseen a troubled period including the completion of Terminal 5, the forced sale of Gatwick airport and the failed attempt to build a third runway.

Sir Nigel said, in an interview with The Independent on Sunday, he will stay on for a second-term: "It's a fascinating company which still has much work to do in upgrading the other terminals and making sure its stays one of the world's leading airports.

On Heathrow's expansion plans, he said: "BAA accepts the Government's decision to stop the third runway." However, privately the BAA chairman believes the Government will soon realise it has made a mistake as Heathrow is losing out at as an international hub to Schiphol and Paris: "It's already happening," he said.

Sir Nigel, who was deputy chairman of Barclays Bank until April last year, is also critical of the Financial Services Authority, for its role in the financial crash, questioning why the regulator didn't stop Royal Bank of Scotland's bid for ABN Amro which destroyed its balance sheet and would have done, even in benign economic conditions: "Why the authorities at the FSA allowed this to happen will be a question asked for many years go come."

He also asks why the FSA didn't see trouble brewing at Northern Rock, as Barclays looked at the lender to see if a bid would create value, but that a risk assessment showed its business model to be unsustainable. "The failure of regulation is the primary reason for the collapse of the financial markets on both sides of the Atlantic. By instinct, I'm a free marketer and regulation always impinges on markets. But for obvious reasons, monopolies or near monopolies have to be regulated in the consumers interest."

Finding out why bank regulators didn't spot the trouble is crucial to making sure it doesn't happen again, he said, and the decision to return banking supervision from the FSA to the Bank of England is a positive one.

Sir Nigel also hits out at the quality of the FSA's regulators – apart from those at the top. "In the past, as soon as banks spotted a talent in the FSA they poached them." To improve the quality of banking supervision, Sir Nigel recommends that all managers who sit on executive committees on banks should be seconded to spend at least one to two years with the regulator: "It will take several years to work through but every 40-year-old high flyer would know that this was a part of the career progression – this experience would embed real risk awareness at the heart of our financial institutions."

Suggested Topics
Sport
David Moyes and Louis van Gaal
football
Sport
New Zealand fly-half Aaron Cruden pictured in The Zookeeper's Son on a late-night drinking session
rugby
News
Liam Payne has attacked the media for reporting his tweet of support to Willie Robertson and the subsequent backlash from fans
peopleBut One Direction star insists he is not homophobic
Arts and Entertainment
A bit rich: Maggie Smith in Downton Abbey
tvSeries 5 opening episode attracts lowest ratings since drama began
PROMOTED VIDEO
News
ebooksAn unforgettable anthology of contemporary reportage
News
Jacqueline Bisset has claimed that young women today are obsessed with being 'hot', rather than 'charming', 'romantic' or 'beautiful'
people
Sport
Greg Dyke insists he will not resign as Football Association chairman after receiving a watch worth more than £16,000 but has called for an end to the culture of gifts being given to football officials
football
Life and Style
A new app has been launched that enables people to have a cuddle from a stranger
techNew app offers 'PG alternative' to dating services like Tinder
News
people
Arts and Entertainment
Jake Quickenden sings his heart out in his second audition
tvX Factor: How did the Jakes - and Charlie Martinez - fare?
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Quantitative Risk Manager

Up to £80000: Saxton Leigh: My client, a large commodities broker, is looking ...

COO / Chief Operating Officer

£80 - 100k + Bonus: Guru Careers: A COO / Chief Operating Officer is needed to...

Senior BA - Motor and Home Insurance

£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...

Market Risk & Control Manager

Up to £100k or £450p/d: Saxton Leigh: My client is a leading commodities tradi...

Day In a Page

A roller-coaster tale from the 'voice of a generation'

Not That Kind of Girl:

A roller-coaster tale from 'voice of a generation' Lena Dunham
London is not bedlam or a cradle of vice. In fact it, as much as anywhere, deserves independence

London is not bedlam or a cradle of vice

In fact it, as much as anywhere, deserves independence
Vivienne Westwood 'didn’t want' relationship with Malcolm McLaren

Vivienne Westwood 'didn’t want' relationship with McLaren

Designer 'felt pressured' into going out with Sex Pistols manager
Jourdan Dunn: Model mother

Model mother

Jordan Dunn became one of the best-paid models in the world
Apple still coolest brand – despite U2 PR disaster

Apple still the coolest brand

Despite PR disaster of free U2 album
Scottish referendum: The Yes vote was the love that dared speak its name, but it was not to be

Despite the result, this is the end of the status quo

Boyd Tonkin on the fall-out from the Scottish referendum
Manolo Blahnik: The high priest of heels talks flats, Englishness, and why he loves Mary Beard

Manolo Blahnik: Flats, Englishness, and Mary Beard

The shoe designer who has been dubbed 'the patron saint of the stiletto'
The Beatles biographer reveals exclusive original manuscripts of some of the best pop songs ever written

Scrambled eggs and LSD

Behind The Beatles' lyrics - thanks to Hunter Davis's original manuscript copies
'Normcore' fashion: Blending in is the new standing out in latest catwalk non-trend

'Normcore': Blending in is the new standing out

Just when fashion was in grave danger of running out of trends, it only went and invented the non-trend. Rebecca Gonsalves investigates
Dance’s new leading ladies fight back: How female vocalists are now writing their own hits

New leading ladies of dance fight back

How female vocalists are now writing their own hits
Mystery of the Ground Zero wedding photo

A shot in the dark

Mystery of the wedding photo from Ground Zero
His life, the universe and everything

His life, the universe and everything

New biography sheds light on comic genius of Douglas Adams
Save us from small screen superheroes

Save us from small screen superheroes

Shows like Agents of S.H.I.E.L.D are little more than marketing tools
Reach for the skies

Reach for the skies

From pools to football pitches, rooftop living is looking up
These are the 12 best hotel spas in the UK

12 best hotel spas in the UK

Some hotels go all out on facilities; others stand out for the sheer quality of treatments