King wants ability to trigger failing bank regime

Under the Treasury’s Tripartite regime only the FSA has the power to initiate the special resolution to help a failing bank, King told the Treasury Select Committee. The Bank of England can recommend using the regime to the FSA, but only the latter can actually trigger the regime. King says the Bank of England should be able to intervene when banks are in trouble, while the FSA should manage individual institutions during ‘peacetime’. King says new banking resolutions, currently debated in Parliament and by the Government, should not be rushed and it would be important to get the details...