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| Osborne gives Bank greater powers | |
| (about 9 hours 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. |
| BBC Online readers have been sending us their thoughts on these announcements. Here is a selection of their 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. | |
| 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? | |
| 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? | |
| 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. | |
| Ben, Maidstone | |
| 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 |