Alistair Darling, UK chancellor, on Wednesday night unveiled the biggest government shake-up of the Bank of England in a decade, with plans to create a “financial stability committee” to address flaws exposed by the crisis over mortgage lender Northern Rock. The new committee is the centrepiece of a package of reforms that Darling hopes will strengthen the Bank’s ability to tackle looming problems in the City. The Bank’s governing Court will be cut from 18 members to a maximum of 12, with more members drawn from City backgrounds, and the Bank will gain a statutory role to oversee financial stability. Separately, the FT reports that Sir John Gieve, the Bank’s deputy governor, announced he would step down in spring after changes to the Bank’s financial stability functions become law.

This entry was posted by Gwen Robinson on Thursday, June 19th, 2008 at 5:38 and is filed under Capital markets, People. Tagged with Alistair Darling. Edit this entry.