godless Posted June 27, 2009 Share Posted June 27, 2009 UK banking act to boost FSA’s rolePosted by Gwen Robinson on Jun 26 05:02. UK chancellor Alistair Darling is planning a new Banking Act this year to strengthen the role of the Financial Services Authority, in an unexpected move that follows criticism of the Bank of England’s failure to warn of the impending banking crisis. Darling wants to give the FSA a new statutory objective of maintaining financial stability, a function currently entrusted to the Bank. Legislation to be introduced in the autumn would enable the FSA to question a bank’s practices and order it to change. http://ftalphaville.ft.com/blog/2009/06/26...oost-fsas-role/ and BoE furious after Chancellor tries to beef up FSA's regulation of the banksHugo Duncan Hugo Duncan 26.06.09 The Bank of England was seething today after it emerged that the Government is planning to strengthen the role of the Financial Services Authority in banking supervision - an area currently entrusted to Threadneedle Street. Chancellor Alistair Darling wants to make the FSA legally responsible for maintaining financial stability in a new Banking Act, depriving the Bank of some of its authority. The move is thought to be a response to the perception that, although the Bank did warn of the impending financial disaster, it did not shout loudly enough. It underlines the extent of the damaging rift between the tripartite authorities - the Bank, the FSA and the Treasury - which culminated this week when Bank Governor Mervyn King attacked the Government's failure to hatch a plan to reduce its ballooning debts and complained he has not been consulted over new legislation. The comments infuriated the Treasury and an unnamed Cabinet minister today accused King of forging an "unholy alliance" with the Tories who favour scaling back the role of the FSA and transferring power to the Bank. Peter Hahn, a fellow at Cass Business School, said: "The politicians are taking sides. One party is for the FSA and the other is for the Bank." The Bank was given responsibility for financial stability when the tripartite system was launched by Gordon Brown in 1997. King wants new powers to enable it to carry out its responsibilities, such as being able to go over the head of the FSA and force banks to increase capital. But Darling believes that as City watchdog the FSA should not only regulate individual banks but also ensure that the combined impact of their business models is not dangerous to the financial system. Legislation to be introduced in the autumn would give the FSA power to question how banks operate and order banks to change their business models if they appeared to be destabilising the system. http://www.thisislondon.co.uk/standard-bus...anks/article.do Quote Link to comment Share on other sites More sharing options...
lufc Posted June 27, 2009 Share Posted June 27, 2009 Ha, a widening rift appearing between the Boe and Government ... that won't do much for financial stability will it. To be fair to him IMHO King has been making the right noises recently whilst the idiots in Downing Street lurch from self inflicted crisis to self inflicted crisis. Next to Zimbabwe the UK can't be far off the political and economic laughing stock of the world. Quote Link to comment Share on other sites More sharing options...
billybong Posted June 27, 2009 Share Posted June 27, 2009 Soon the BoE will be running out of things to do - apart from set interest rates once a year or so that is Quote Link to comment Share on other sites More sharing options...
3 Men In A Boat Posted June 27, 2009 Share Posted June 27, 2009 Quelle surpris Cos the FSA have got a great record!! Quote Link to comment Share on other sites More sharing options...
libspero Posted June 27, 2009 Share Posted June 27, 2009 (edited) ^ || Beaten to it Well, the FSA did a pretty good job last time.. I think we should give them another shot Edited June 27, 2009 by libspero Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted June 27, 2009 Share Posted June 27, 2009 Ha, a widening rift appearing between the Boe and Government ... that won't do much for financial stability will it.To be fair to him IMHO King has been making the right noises recently whilst the idiots in Downing Street lurch from self inflicted crisis to self inflicted crisis. Next to Zimbabwe the UK can't be far off the political and economic laughing stock of the world. It appears that King is realising he has the ascendency and is no longer willing to be Brown's gimp. I think he knows in under a year this idiot will no longer be PM. It will certainly be interesting watching Brown saying he'll be increasing spending if he wins with King saying fiscally that cannot happen. I wonder if we will soon see open criticism of govt policy soon from King rather than subtle hints. Quote Link to comment Share on other sites More sharing options...
Leonard Hatred Posted June 27, 2009 Share Posted June 27, 2009 the Financial Services Authority Who?! Quote Link to comment Share on other sites More sharing options...
spivT Posted June 27, 2009 Share Posted June 27, 2009 Legislation to be introduced in the autumn would enable the FSA to question a bank’s practices and order it to change. i thought that was the whole point of a regulator. Regulator doesn't like what your doing, regulator has the power to force you to change. or maybe they should change the name of the FSA to the FRA....the financial regulatory authority, so that no-ones in any doubt as to the power they hold or intend to have. Unless ofcourse they want to remain toothless, in which case they aren't regulators. Perhaps there's been a misleading of the role of the FSA by the treasury since the beginning. Quote Link to comment Share on other sites More sharing options...
Moley Posted June 27, 2009 Share Posted June 27, 2009 Who?! Bunch of useless lazy twats. Yes I have had dealings with them. Quote Link to comment Share on other sites More sharing options...
EmpiricalBear Posted June 27, 2009 Share Posted June 27, 2009 (edited) No problem. The tories will sink this bill once they are voted in. As was said earlier this week, Osborne plans to give powers back to the BoE. Edited June 27, 2009 by 2MeterBear Quote Link to comment Share on other sites More sharing options...
Timm Posted June 27, 2009 Share Posted June 27, 2009 This sounds like it has more to do with childish point scoring than financial stability. I see the hand of the Gobbler in this more than that of Darling. He wants to slap King for making him look bad and cares nothing for anything else. Quote Link to comment Share on other sites More sharing options...
crash2006 Posted June 27, 2009 Share Posted June 27, 2009 i thought that was the whole point of a regulator. Regulator doesn't like what your doing, regulator has the power to force you to change.or maybe they should change the name of the FSA to the FRA....the financial regulatory authority, so that no-ones in any doubt as to the power they hold or intend to have. Unless ofcourse they want to remain toothless, in which case they aren't regulators. Perhaps there's been a misleading of the role of the FSA by the treasury since the beginning. the concept of having regulator bodies isnt for your benefit, they make it look like that but in reality is for the benefit of business. Quote Link to comment Share on other sites More sharing options...
A.steve Posted June 27, 2009 Share Posted June 27, 2009 (edited) The logical thing to do is to simply make the FSA subordinate to the BoE. This way, the BoE calls all the shots, while the FSA are responsible to the BoE (who are in a position to judge) rather than the Treasury - where there would be (are) inevitable conflicts of interest. Edited June 27, 2009 by A.steve Quote Link to comment Share on other sites More sharing options...
huw Posted June 27, 2009 Share Posted June 27, 2009 FT Editorial on this: Mr King is right. Financial stability policy would ideally be able to contain City euphoria without cooling the whole British economy. But that will sometimes be impossible; someone, somewhere, will need to weigh economic and financial priorities against one another. Given its role in moderating the real economy through monetary policy, the Bank is the only institution that can judge the options. Quote Link to comment Share on other sites More sharing options...
Lord D'arcy Pew Posted June 27, 2009 Share Posted June 27, 2009 (edited) Who?! No, that's the World Health Organization. This is the FSA http://en.wikipedia.org/wiki/Farm_Security_Administration Edited June 27, 2009 by Lord D'arcy Pew Quote Link to comment Share on other sites More sharing options...
Sinking Feeling Posted June 27, 2009 Share Posted June 27, 2009 The move is thought to be a response to the perception that, although the Bank did warn of the impending financial disaster, it did not shout loudly enough. Everyone else heard, it's just that the government took no bloody notice. Quote Link to comment Share on other sites More sharing options...
tinker Posted June 27, 2009 Share Posted June 27, 2009 This sounds like it has more to do with childish point scoring than financial stability.I see the hand of the Gobbler in this more than that of Darling. He wants to slap King for making him look bad and cares nothing for anything else. It looks a bit like that, not that the BoE have much to crow about, but the FSA has been a complete waste of time. Such 'I'll show you' petulance is no way to run a country. The government are an absolute joke - the trouble is the joke is on us. Quote Link to comment Share on other sites More sharing options...
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