Alistair Darling yesterday paved the way for the Treasury to bring in a group of high-powered City figures to oversee the Bank of England's policing of the markets and help to prevent a repeat of the Northern Rock fiasco, The Times reports.
In plans that are likely to inflame tense relations between the Treasury and Mervyn King, the Bank’s Governor, Mr Darling revealed that he wants to impose on the Bank an expert panel to advise it on emerging financial dangers and monitor if efforts to prevent crises.
The Chancellor signalled the proposals, likely to be seen at the Bank as unwelcome external interference, in remarks in the Commons.
THE HOUSING MARKET is deteriorating at a much faster rate than it did during the recession of the early 1990s, Bellway said, as expectancy grew in the City that some UK housebuilders could be forced to raise capital to shore up their balance sheets, according to The Telegraph.
Bellway said that the spring season - traditionally a strong sales period for housebuilders - failed to take off and a restricted supply of mortgages was exacerbating the problem. It now expects volumes to fall by 10%-15% this year.
Alistair Leitch, Bellway's finance director said: "I went through the 1989/90 slowdown with the company and it was drip, drip, drip then. Now the rapidity is striking."
THE FINANCIAL SERVICES Authority has warned investment banks, and other firms involved in deals, to tighten up measures to stop leaks of inside information about takeovers, The Independent reports.
The City watchdog said yesterday that firms from banks to printers had made progress in the past year but that there were still too many people involved in deals and processes remained sloppy.
Companies have complained that it is difficult to limit the number of people involved in deals because secretaries need to prepare papers, specialists have to be brought in, and information technology staff require access to computer systems.IFAonline
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