Darling could grant FSA new powers in bank strife - papers 30 Jan

Launching a 12-week consultation on his proposals, Darling will argue that the FSA needs extra powers to step in at an earlier stage when a bank gets into trouble. The chancellor also intends to create a special insolvency regime for banks that will give the FSA power to extract depositors' cash from a failing institution. He will say the reform is essential to prevent a bank failure leading to queues at branches and further loss of public confidence. FOURTEEN COMPANIES, including some of the world's largest banks, are being investigated over possible accounting fraud, improperly securing...