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| Version 10 | Version 11 |
|---|---|
| Osborne gives Bank greater powers | Osborne gives Bank greater powers |
| (40 minutes later) | |
| Gordon Brown, made chancellor when the Labour Party won the 1997 general election, created the FSA following criticism that the Bank of England had failed to sufficiently regulate the UK's financial system. | Gordon Brown, made chancellor when the Labour Party won the 1997 general election, created the FSA following criticism that the Bank of England 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. The FSA also came in for criticism for not doing enough to prevent or limit the crisis in the financial markets. | But there was criticism of Mr Brown's move from people who thought the change gave far too much power to a single body. The FSA also came in for criticism for not doing enough to prevent or limit the crisis in the financial markets. |
| The governor of the Bank of England, Mervyn King, welcomed the new powers given to the Bank by the new government. | The governor of the Bank of England, Mervyn King, welcomed the new powers given to the Bank by the new government. |
| "Monetary stability and financial stability are two sides of the same coin. During the crisis the former was threatened by the failure to secure the latter," Mr King said in his speech, which followed the chancellor's. | "Monetary stability and financial stability are two sides of the same coin. During the crisis the former was threatened by the failure to secure the latter," Mr King said in his speech, which followed the chancellor's. |
YOUR VIEWSBBC News Website readers have been sending us their thoughts on these announcements. Here is a selection of your comments. | YOUR VIEWSBBC News Website readers have been sending us their thoughts on these announcements. Here is a selection of your comments. |
| Banks need to go back to providing a service rather than trying to sell customers everything under the sun when they walk through the doors. This would restore confidence in the banking system rather than making people think the banks are just after their money. Maybe the Bank of England will be able to implement this, which is where the FSA failed. | Banks need to go back to providing a service rather than trying to sell customers everything under the sun when they walk through the doors. This would restore confidence in the banking system rather than making people think the banks are just after their money. Maybe the Bank of England will be able to implement this, which is where the FSA failed. |
| Israr Akmal, Walsall | Israr Akmal, Walsall |
| How much will it cost to move the employment of FSA staff back to the Bank of England where most of them came from in the first place? Is this really a sensible use of scarce financial resources just for some political dogma and point scoring? | How much will it cost to move the employment of FSA staff back to the Bank of England where most of them came from in the first place? Is this really a sensible use of scarce financial resources just for some political dogma and point scoring? |
| William Cobbett | William Cobbett |
| The Banks need taking to task because they have gone back to what they were doing before the crash. How can they charge so much yet give so little to the savers? Also, with such a low interest rate, how is it possible that the credit card companies can have such high interest rates? | The Banks need taking to task because they have gone back to what they were doing before the crash. How can they charge so much yet give so little to the savers? Also, with such a low interest rate, how is it possible that the credit card companies can have such high interest rates? |
| Roy Shepherd, Atherstone, Warwickshire | Roy Shepherd, Atherstone, Warwickshire |
| I welcome any change that gives stronger regulation to the financial system. However I question whether this move actually makes regulation any tighter, or if it's just a facade to pretend that it is. | I welcome any change that gives stronger regulation to the financial system. However I question whether this move actually makes regulation any tighter, or if it's just a facade to pretend that it is. |
| Ben, Maidstone | Ben, Maidstone |
| The FSA failed completely. If the proposals go some way to preventing a repeat of 2009, then it is a good thing. | The FSA failed completely. If the proposals go some way to preventing a repeat of 2009, then it is a good thing. |
| S Brown, London | S Brown, London |
| Failed Banks should pay for their own mistakes not the customers or general public. Systems of operation need to be devised by bankers. However independent agencies should be monitoring and regulating banks. | |
| Dorothy, UK | |
| Let us remember the British financial crisis started here with the collapse of Northern Rock, a building society with an insane business model which did not and could not have existed under the regime prior to Gordon Brown's ill-conceived meddling. And its underlying cause was an economy based on cheap credit and ever rising levels of debt. What we now need is to change the government's culture of economic management, away from macro managing banks and back to providing a sound, sensible economic environment in which business and enterprise can thrive. | |
| Roger Earp, Sheffield | |
| I know of late England does not want to use the word "Canada" in any of its thoughts, however they might find it much better to base their banking system on that of Canada. Canada came out of the recession much quicker than any country and it has excellent banking regulations. | |
| Ed, Victoria BC, Canada | |
| The issue is not whether regulation resides in the ministry, the Bank or a separate agency. The issue is one of regulators recognizing signs of weakness - whether systemic or institutional - and having the gumption to take prompt & effective action. | |
| Nigel Davies, Washington DC |