The U.K.'s decision this week to scrap the Financial Services Authority (FSA) may signal that consolidated supervision doesn't work. But more likely it shows that the structure of bank regulation is beside the point.

The U.S. and U.K. could not have been more different in their approaches to supervisory structure, and yet both countries suffered immensely in the latest financial crisis. Canada, meanwhile, withstood the crisis remarkably well with a centralized regulatory model not unlike the one accused of failing the British.

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