Darling pulls a fast one
Alistair Darling has just forced George Osborne to the dispatch box to explain the regulatory measures that he will announce at Mansion House later today. Osborne confirms that some powers will return to the Bank of England and that an independent commission, under Sir John Vickers, will take into account competing views on capital, leverage and liquidity requirements. Retail and investment banking will be split under the new arrangements. This is effectively the end of the tri-partite system. Alistair Darling defends the tri-partite system in its entirety, arguing that no one will understand from ‘this dog’s breakfast’ who now regulates the banks – talk about undermining confidence, which the opposition
