A decade later, the financial crisis demonstrated that financial imbalances can ultimately endanger macroeconomic stability and highlighted the need for enhanced central bank oversight of the financial system. In the post-crisis era, the FSA became two separate regulatory authorities, one of which--the Prudential Regulation Authority, created in 2012--is part of the Bank of England. In effect, regulatory powers have largely returned to the Bank.
People feared banks’ balance sheets concealed fragilities that in the end would strain the economies. So they started this exercise thinking that, being transparent, and marking-to-market sovereign bonds, would strengthen the credibility of the banking system and reduce risk premia. At the end, it did not work that way because of the sequencing. But I wouldn’t say it’s EBA’s fault.