LONDON (Thomson Financial) - UK Chancellor of the Exchequer Alistair Darling will on Wednesday launch a three-month consultation on increasing banking supervision in an attempt to avoid another Northern Rock-style crisis, the Financial Times reported.
Darling wants to give the Financial Services Authority more powers to scrutinise the liquidity of financial institutions and to put the Bank of England s role in safeguarding financial stability "on a statutory footing", the paper said.
The FT cited Treasury officials, however, as saying that it is important not to overreact by attempting to legislate for every eventuality, echoing comments made by Darling last week. jessica.mortimer@thomson.com jkm/jlw COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News. MMMM
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