Mortgage News
Tories name men to lead break up of FSA
Two Bank of England directors have been earmarked to take control of transferring banking supervision from the FSA to the central bank if the Tories win the election.
The Independent reports Paul Tucker, a deputy governor of the Bank, and Andrew Bailey, executive director of special operations in the banking sector, are the two bankers who the Conservatives believe are best equipped to deal with the interim period ahead of the proposed break-up of FSA.
Early talks have taken place between them and the Tory treasury team, led by the shadow Chancellor, George Osborne, but it has not yet been decided which of the two would take prime responsibility.
Plans to dismantle the FSA, widely criticised for its “light-touch” regulation for not catching many of the funding problems leading to the collapse of Royal Bank of Scotland, Northern Rock and HBOS, are at the heart of Tory policy to sharpen up City and banking regulation.
The plans involved abandoning Labour’s tripartite system of regulation by returning oversight of banking to the Bank while creating a new consumer watchdog to deal with mortgages, insurance products and other financial issues such as advice.
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