BoE did not trade Solvency II for removal of call-in powers

Speaking at a Treasury Select Committee alongside several central bank colleagues yesterday (16 January), Bailey was grilled over its latest Financial Stability Report, issued in December 2022. The committee asked Bailey about various reforms being proposed, including the now dismissed call-in powers. The government backed down on its plans for a controversial power back in November that would have allowed it to intervene in financial regulation at will. Bailey and other major City figures were openly against the deal, something the governor acknowledged during the questioning. One...