'Chancellor grants FSA more power over banks'

News Article - 04 January 2008
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In an attempt to prevent another Northern Rock-like crisis, the chancellor is granting the Financial Services Authority (FSA) increased power over banks.

Alistair Darling told the Financial Times that he wants the FSA to be entitled to step in and seize the funds of any banks that appear to be failing, and distribute savings to a safer location.

"I want to make sure our own legislation is up to the mark in dealing with problems when they arise in future," he said.

Consultation over the new legislation will begin over the next few weeks, he continued, explaining that he hopes it will be implemented in May.

In December, the FSA published a discussion paper on the liqiduity policies of building societies and banks. The body claimed that following the run on Northern Rock, there needed to be a number of amendments made to regulation.

Article keywords: Northern Irish (NI) accountants are lobbying their first minister Rev Ian Paisley to help secure a cut in the region's corporation tax.<br/><br/>At a recent opening of the new office for the Institute of Chartered Accountants in Belfast, finance professionals told the Mr Paisley how important they believed such a cut would be.<br/><br/>Jim Aiken, the institute's vice-president, said that reducing the tax rate would be of benefit to both sides of the Irish border.<br/><br/>&quot;To be truly successful in the international market, this island economy must display a united front to the world. <br/><br/>&quot;By acting as closely as we can, both territories will surely benefit.&quot; <br/><br/>Mr Aiken predicted that by showing unity with regard to taxation, investment would be attracted from overseas, supporting island economies.<br/><br/>Last month, the European commission said that any reforms to corporation tax across the whole island would need to comply with current EU laws which rule out state aid to companies.<br/>

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