UK To Introduce Sweeping Bank Reforms

Darling announces regulatory shift after Northern Rock fiasco
By Jason Farago,  Newser Staff
Posted Jan 4, 2008 10:51 AM CST
Britain's Prime Minister Gordon Brown, left, and Chancellor Alistair Darling, give a press conference inside 10 Downing Street, London, Wednesday Dec. 19, 2007. During the press conference Brown commented...   (Associated Press)
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(Newser) – Britain's chancellor will offer sweeping new powers to that country's equivalent of the SEC to intervene in the event of a banking crisis. In an interview with the Financial Times, Alistair Darling presented a set of triggers that would allow the Financial Services Authority to step in and protect assets from a foundering bank like Northern Rock to avoid depositors panicking

Darling was forced to commit at least $50 billion of taxpayers' money to shore up Northern Rock after fallout from the collapse of the subprime market let to the first bank run in Britain in over a century. Since then the chancellor has struggled to rescue a badly performing business and restore public confidence. Darling's new scheme is comparable to measures already in place in the US.