You know it makes sense
So here we have it, Merv the Swerve who didn't see the banking crises coming and then took the wrong action by committing tax payers money to save the likes of the Northern Rock and George the boy scout in the driving seat of UK PLC, what can we say?
We can say this: get your money out of the pound pronto.
This is an excerpt from MarketWatch -- New U.K. Chancellor George Osborne on Wednesday undid the regulatory shakeup that Gordon Brown made in 1997, announcing that the Bank of England and a new agency would take virtually all of the powers away from the Financial Services Authority.
At the annual Mansion House speech, Osborne said the Bank of England would get powers to have a "big picture" of the financial system, as the tri-partite system that divided authority between the central bank, the FSA and the U.K. Treasury gets unwound.
Under Osborne's plan, a regulator will report to the Bank of England which will have oversight of banks, investment banks, building societies and insurance companies. In addition, an independent financial policy committee will be created at the Bank of England to look across the economy at the macro issues that may threaten economic and financial stability and take effective action in response.
A new consumer protection and markets authority also will be established, Osborne said. He expects the new regulatory system to be in place by 2012.
For his part, Bank of England Governor Mervyn King embraced the new role, in what puts him in a similar position to U.S. Federal Reserve Chairman Ben Bernanke.
King is the effectively the last man standing from the Northern Rock collapse of 2007, which triggered the first bank run in the U.K. in more than 150 years.
King also rejected criticism the U.K. central bank has been too complacent over inflation, which has been running well above its 2% target.
"The MPC judges that spare capacity in the economy will press down on inflation," King said. King also explained how the U.K. central bank will tighten monetary policy -- with rate hikes from the 0.5% level preceding the sale of assets it's bought under its quantitative easing program.
A quick look at the resume of Mr Osborne shows just what a heavyweight he isn't!
Born and educated in London, George studied modern history at Oxford University, where he became joint editor of the University magazine Isis.
After a short spell as a freelance journalist, George joined the Conservative Research Department in 1994 and has since dedicated himself wholly to politics. Chancellor of the Exchequer, May 2010
and thats it? The mind boggles.....
Have a good one.
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