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| Version 0 | Version 1 |
|---|---|
| Osborne 'to give Bank more power' | Osborne 'to give Bank more power' |
| (about 4 hours later) | |
| Mr Osborne is said to favour giving the Bank of England more powers | Mr Osborne is said to favour giving the Bank of England more powers |
| Chancellor George Osborne is expected to announce later that the Bank of England will be given the key role in regulating the UK financial sector. | Chancellor George Osborne is expected to announce later that the Bank of England will be given the key role in regulating the UK financial sector. |
| In his first Mansion House speech, he is tipped to return this power to the Bank at the expense of the Financial Services Authority (FSA). | In his first Mansion House speech, he is tipped to return this power to the Bank at the expense of the Financial Services Authority (FSA). |
| Before the election, Mr Osborne had suggested he would abolish the FSA. | Before the election, Mr Osborne had suggested he would abolish the FSA. |
| But he is expected to say the watchdog will be retained - but with a watered-down role supervising individual banks. | |
| The FSA has come in for criticism for not doing enough to prevent or limit the crisis in the financial markets. | The FSA has come in for criticism for not doing enough to prevent or limit the crisis in the financial markets. |
| Crackdown on crooks | |
| Mr Osborne is expected to detail plans for a powerful new Financial Policy Committee at the Bank of England. | |
| This could involve creating a new post, such as a chief executive of financial regulation, with the status of a third deputy governor of the Bank. | |
| The chancellor may also confirm an intention to introduce a levy on banks, but full details are more likely to come in next week's budget. | |
| The BBC's business editor, Robert Peston, said that the FSA was effectively being broken up. | |
| "The part that's supposed to prevent banks taking dangerous gambles, which regulates and supervises them, will become a subsidiary or arm of the Bank of England. | |
| "And the bits that are supposed to protect consumers and crack down on crooks will be injected respectively into a new Consumer Protection Agency and an Economic Crime Agency," our correspondent said. | |
| Gordon Brown, made Chancellor when the Labour Party won the 1997 general election, created the FSA following criticism that the Bank had failed to sufficiently regulate the UK's financial system. | |
| But there was criticism of Mr Brown's move from people who thought the change gave far too much power to a single body. |