FSA and BoE to get new powers in banking reform

Addressing the Lord Mayor’s Mansion House banquet last night, the Chancellor says the BoE will now have a formal legal responsibility for financial stability, alongside its existing role in monetary policy. The new powers are in response to the Northern Rock disaster and the continued turmoil in credit markets. Darling says the banking reform proposals will give additional responsibility for both the FSA and BoE, while improving co-ordination procedures between the two. The FSA remains the sole banking supervisor. However, it emerged last night BoE deputy governor Sir John Gieve is to...