The Bank of England has been sidelined in a proposed shake-up of Britain\’s banking system that will hand greater powers to its regulatory partners, the Treasury and the Financial Services Authority.
Chancellor Alistair Darling has limited the Bank\’s contribution in the event of another Northern Rock to an advisory role while giving the FSA new powers of intervention.
Let\’s take regulation of the banking system away from bankers and give it to people who don\’t know what they\’re doing. What a clever idea!
Is there any major reason why you think ‘bankers’ (here actually economists these days, surely?) are better at regulation than regulators? Loads of countries split up monetary policy and bank regulation.