Banking reforms slammed as 'White Paper duck'

Banking reforms slammed as 'White Paper duck'


Chancellor Alistair Darling’s long awaited reforms for ensuring the stability of the financial system have not delivered quite the punch many had hoped for. 

Although there was tough talk about bringing so-called ‘kamikaze’ bankers in line and their pay packets down to earth, decisive rules failed to emerge.


Radical reforms were shunned in favour of reinforcing the existing framework of the tripartite regulatory system and plans were set out for a new “super regulator” the Council for Financial Stability to be created, which the Bank of England, the FSA and the Treasury will have to report to.


Additional powers will be given to the FSA to monitor City pay and bonuses, whilst banks will be required to build up stronger capital reserves.  


Shadow chancellor George Osborne labelled the White Paper, “a White Paper duck”, adding: “After two years of talk in the Treasury, we will have a council that will bring together the FSA, Treasury and Bank of England. I thought that was what the tripartite system was. The Chancellor should have come here to bury the tripartite system, not praise it.”

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