What goes around comes around, and it easily forgotten why the Bank of England was stripped of its authority in these matters in the first place. Under the Bank\’s watch, there had in short order been two notable failings in oversight – the Bank of Credit and Commerce International (BCCI) and Barings. Mr Brown and his aides took the view that the Bank of England\’s credibility as an independent monetary authority could be compromised by such failings, which, however expert the financial regulator, are bound to occur from time to time.
Well, yes, but if financial crises are going to happen from time to time, whoever is doing the regulating, then might e not want the regulatory system that dealt with crises without causing a systemic problem?
The Bank not the FSA?