Failed banks to be handled by new BoE office

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The Treasury Select Committee has proposed giving powers to deal with failing banks to a single member of the Tripartite Authorities as part of a report into the near collapse of Northern Rock.

The report, entitled The Run on the Rock, has recommended a radical shake up of both the Bank of England and the FSA, including the creation of a new post to advice the Chancellor. John McFall MP, chairman of the Treasury Committee, says: “Both have been found wanting with regard to financial stability. Accordingly the Committee has identified a need for a new office of Deputy Governor of the Bank of England and Head of Financial Stability. “This individual should be one of the principal channels of advice to the Chancellor of the Exchequer on financial stability. If the government wan...

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