Call for FSA
Current financial stability
Financial Compliance News - Call for Financial Services Authority to be core division.
The current financial stability regime is a "disaster" and the Financial Services Authority should be absorbed into the Bank of England, according to a former leading figure in the City. Sir Martin Jacomb, who was deputy chairman of Barclays Bank and a director of the Bank of England, today proposes a new framework for financial supervision.
The Financial Services Authority, he says, should become one of the Bank's core divisions with the same relationship to the Bank as the Monetary Policy Committee - a body with Bank and external representatives that has the authority to set interest rates.
In addition, a third Bank division should be created in the form of a new systemic policy and risk committee, charged with maintaining current financial stability overall, restraining asset price bubbles and specifying banks' capital and liquidity requirements.
Source : Financial Times page 2 - 2.6.09.
Submitted by {FOR-PMI Ltd} on Tuesday 2nd June 2009