UK's tough financial regulator, Andrew Bailey has indicated that he will take tougher line against the industry in the country than his predecessors.

He said that he will take a tough stance in supervising Britain's discredited banks following a series of scandals in in the financial sector in the country. Bailey will now act as head of the Prudential Regulation Authority and deputy governor of the Bank of England and will have authority to regulate the banking sector in the country.

He spoke tough on the Treasury Select Committee in a hearing into the Co-op Bank. He also released a letter stating that former Co-op executives went ahead with plans to acquire more than 600 Lloyds branches even after warnings. Bailey was in charge of dealing with troubled building societies at the peak of the crisis in 2008 and 2009.

He said that takeover of the Britannia was the major reason behind the failure of the bank. Richardson, the former head of the Co-op Bank is facing criticism from the Bank of England after he blamed the regulators for the troubles of the bank. Ratings agencies and the Bank's Prudential Regulatory Authority had earlier blamed Britannia merger for the company's troubles also some parts of the bank's loan books.