Ohio Banking Regulations
The Chancellor of the Exchequer, George Osborne, has announced major new banking reforms, handing the Bank of England a top regulatory role in the British financial sector.
Osborne's Announcement
The Chancellor addressed the House of Commons on Wednesday June 16, saying that the current system of regulating banks has "failed spectacularly". The Financial Services Authority, which currently leads the current system of financial regulation, will be dismantled. The FSA was criticised for spotting the problems of British banks such as Northern Rock which had to be bailed out by the government. The announcement regarding the FSA is consistent with Osborne's statements during the general election campaign.
Mr Osborne also announced that Sir John Vickers would look into the break-up of Britain's largest banks. Regarding the Bank of England, Mr Osborne stated that "On the structure of regulation, our plan is to hand over to the Bank of England responsibility for macro-prudential supervision, that should never have been taken away from it", according to the BBC News website.
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