Financial shake-up by Darling expected

News Article - 23 May 2012
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Chancellor of the exchequer Alistair Darling is expected to announce an unprecedented shake-up of the financial industry later this week.

Following the global economic problems, slowing housing market and collapse of Northern Rock, Mr Darling is to bring in a new framework to adjust to changing conditions, the Financial Times reports

On Wednesday night, the chancellor will speak to Mansion House and introduce changes to the tripartite system.

This structure was brought in by prime minister Gordon Brown in 1997 when he began his role as chancellor after Tony Blair come to power.

According to the news source, in his speech Mr Darling will say: "We are exposed to global events like never before, as the past 12 months have shown."

It is currently the responsibility of the Bank of England, the Financial Services Authority and the Treasury to manage financial crisis, but it is likely this will now change despite claims in the past from the chancellor that there was nothing wrong with this system.

Recently, Mervyn King, governor of the Bank of England, stated that the economic problems are unlikely to abate in the near future.

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