The Chancellor is expected to overhaul the balance of power between the FSA, Bank of England and Treasury, reports the Daily Mail.
He is convinced the tripartite system of regulation set up by Gordon Brown when Labour came to power was a major factor in the collapse of the British banking system and wider economy.
The Chancellor will use a Mansion House speech tonight to signal that he is pressing ahead with changes to strip the FSA of many of its powers.[Read more]
The Bank of England is expected to take charge of banking regulation and supervision – and will absorb the FSA departments responsible for monitoring insurers and large financial institutions.
The Times also reports that the BOE will be handed greater powers to block and intervene with banks if they take excessive risks.
Osborne is also expected to revert to the tradition of wearing black tie tonight as he delivers his first Mansion House speech as Chancellor.
