Osborne in dramatic overhaul of British banking powers

BRITISH chancellor George Osborne has handed over powers to the Bank of England to prevent a repeat of the banking excesses which triggered the recession.

Mr Osborne announced the abolition of the Financial Services Authority in a shake-up of City regulation which he said would produce “a new settlement between our banks and the rest of our society – a fairer settlement in which the banks support the people, instead of the people bailing out the banks”.

Regulatory powers will return to Threadneedle Street with the creation of three new bodies in the bank to deliver prudential regulation of financial firms, financial stability, and consumer protection.