The Bank of England would win new powers to mount covert rescues of troubled banks under options being considered by Alistair Darling in the wake of the Northern Rock crisis. Changes to the Takeover Code that would allow the authorities to arrange “white knight” deals quietly in a matter of days - rather than the minimum 60-day period required now - are among several ideas being looked at by the chancellor as part of an overhaul of financial regulation. In a discussion paper expected in the new year, the government is likely to recommend that the Bank be more vigorous in monitoring banks’ financial health and that its remit in this area be more explicit.
