TREASURY: TAKE OVER OF TROUBLED BANKS


Alistair Darling has unveiled proposals to make it easier for the banking authorities to take over troubled banks.

The move will enable the Bank of England and Financial Services Authority (FSA) to launch a secret takeover of a failing bank, in a bid to prevent a repeat of last year’s run on Northern Rock.

The proposals allow for emergency funding for "a period of non-disclosure".

This would mean the Bank of England did not need to publish accounts detailing funding thereby, ministers hope, avoiding a crisis of consumer confidence.

If a bank is facing outright collapse, the government would be granted the power to "take temporary ownership of all or part of a bank as a last resort".

Feel free to leave a reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.