King wants ability to trigger failing bank regime

clock

Mervyn King has told MPs he would have liked the ability to trigger the special resolution regime to rescue the failing Northern Rock.

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 deta...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

Feel Good Friday: Quilter pledges £3m towards financial education

Feel Good Friday: Quilter pledges £3m towards financial education

Alongside £1m in grants supporting charities

Professional Adviser
clock 13 February 2026 • 1 min read
Brits unlikely to see IFAs despite Budget impact

Brits unlikely to see IFAs despite Budget impact

Just 19% were likely to seek advice, Continuum finds

Isabel Baxter
clock 12 February 2026 • 3 min read
Treasury consults on AR regime adding further FCA and FOS permissions

Treasury consults on AR regime adding further FCA and FOS permissions

Amid concerns about consumer harm and weaknesses in oversight

Isabel Baxter
clock 12 February 2026 • 3 min read