Alistair Darling must replace the Bank of England's financial stability chief in favour of someone with extensive City experience, the Shadow Chancellor said, The Telegraph reports.
George Osborne urged Mr Darling to appoint an executive with "significant experience of financial markets" as one of the Bank's two deputy governors.
In a letter to Mr Darling, Mr Osborne said that following the credit crunch and the Northern Rock fiasco, the new appointee to the Bank and the Monetary Policy Committee must have a "real understanding of the City".
In what may be seen as a slight to Sir John Gieve, the deputy governor for financial stability, Mr Osborne recommended the Chancellor's new appointment takes on his remit, leaving Sir John to take charge of the soon-to-be-vacant monetary policy role.
THE DECISION OF an anonymous group of 13 financial industry figures will get more attention than normal today when the British Bankers' Association announces changes designed to shore up confidence in its industry-standard inter-bank lending rate, according to The Independent.
The London inter-bank offered rate (Libor), which is the benchmark for more than $350trn (£180trn) of derivatives and corporate bonds, has been under the spotlight since it spiked up at the start of the credit crunch last summer.
The cost of lending between banks rocketed as they hoarded cash while liquidity drained from the system.
ROYAL BANK OF Scotland has extended the deadline for first-round bids for its £7bn insurance arm, The Telegraph also reports.
It is understood the high street bank will let bidders submit initial offers next week for the division, which is home to well-known brands such as Churchill and Direct Line. Predators had previously been given until Wednesday night to make a proposal.
A source said the move was prompted by prospective bidders asking for more time to look over the business's documentation and that the bank had initially aimed for an "indicative date" rather than a hard-and-fast deadline.IFAonline
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