UK reforms 'will not hand regulatory role to Bank of England'

Next week's package of British government reforms to the banking system will not hand over responsibility for regulation to the Bank of England, City minister Paul Myners indicated.

The Bank's governor Mervyn King has been reported to be lobbying to take the job of regulating the larger banks from the Financial Services Authority, which was widely seen to have failed to prevent the financial meltdown of last autumn.