London(Shakespearefinance) May 29, 2008:

CBI's ( Confederation of British Industry) ex-director general—and presently the British government's mast-head on climate change—has emerged as the front runner for the FSA's top job. Intimate sources have indicated that the appointment might be announced next month.

"An announcement on the FSA position will be made in due course," Treasury (the appointing authority for the post of FSA chairman ) spokeswoman reported on Tuesday. However both Turner and the FSA did not comment on the issue.

The top seat will fall vacant this September after the retirement of Callum McCarthy. If Mr. Turner's appointment is confirmed then it will be another high-profile job for the ex McKinsey consultant, who was made CBI head in 1995.

The FSA is struggling with the issues of dented reputation. The FSA was left with the responsibility of working as a watch-dog over the UK banks after the shocking debacle witnessed by the nation's fifth-biggest mortgage lender. It was the biggest challenge faced by the authority since its formation about eight years ago. Having forced to nationalize Northern Rock, the government was politically embarrassed.

"The FSA is a slightly bruised animal for obvious reasons, so just re-establishing its credibility and its pre-eminence needs someone with the right level of ability and standing," a regulated firm's observer noted.