The Conservatives have proposed the biggest shake-up of the Bank of England since its independence over a decade ago, with a new Bank Act designed to prevent a re-run of the Northern Rock crisis, The Telegraph reports.
Slamming the Chancellor's proposal to give the Financial Services Authority extra responsibilities to help rescue stricken banks, Tory leader David Cameron said the Bank should be given these powers to intervene in future financial crises. He also urged Alistair Darling to reappoint Bank Governor Mervyn King immediately for a new term. Mr Cameron was speaking amid growing evidence the Government is gearing up for the full-scale nationalisation of Northern Rock, as hopes of selling the bank to private-sector buyers evaporate. He said nationalisation would represent "the most complete humili...
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