Mark - back to something sensible to discuss properly.
I think you mis-read Mrs T's attitude to regulation and that of the Conservatives.
First of all it was Mrs T who first brought in retail Financial Services regulation with the 1986 Financial Services Act. So that alone demonstrates that Conservatives are not against regulation per se'
The point is that it has to be the right regulation.
Mrs T also did not play around with the Bank of England's role in regulating the banks activities, she knew better than that and indeed John Major also.
It was Brown in 1997 who changed the whole regulation structure for financial services including the banks. He instituted the Financial Services Authority of whom I have a direct experience which has a much more interventionist approach to regulation in the retail side and initially more hands off in the banking side of things . it certainly has been far from successful in its role. Brown's biggest mistake though was introducing a tri-partied approach to bank regulation. Instead of one clear regulator to whom they answered whole thing was split between the FSA, Treasury and Bank of England.
I can demonstrate one impact of that change as told to me by friend was a bank Chief Exec prior to 1997 and just after. He was required to take his senior management team to the BoE every quarter to be grilled on every aspect of his banking operations. The BoE had some very draconian powers if they did not like the answers. After 1997 and the tri-partied regime coming into play all that ended.
Remember - Brown, at the annual Mansion House banquet in the City, in a now infamous speech actively encouraged the banks to make use of his new looser regime and to take risks. We have actually this week seen him, most uncharacteristically, admit he made a mistake over bank regulations and from him that is quite something! He of course is full of excuses and even in his comments downplays his role and the environment that he created. He toughened regulation where it was least needed and loosened it where it was most needed.....
http://www.bbc.co.uk/news/business-13032013