King wants ability to trigger failing bank regime

clock

Mervyn King has told MPs he would have liked the ability to trigger the special resolution regime to rescue the failing Northern Rock.

Under the Treasury’s Tripartite regime only the FSA has the power to initiate the special resolution to help a failing bank, King told the Treasury Select Committee. The Bank of England can recommend using the regime to the FSA, but only the latter can actually trigger the regime. King says the Bank of England should be able to intervene when banks are in trouble, while the FSA should manage individual institutions during ‘peacetime’. King says new banking resolutions, currently debated in Parliament and by the Government, should not be rushed and it would be important to get the deta...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

FCA proposes overhaul of client categorisation rules

FCA proposes overhaul of client categorisation rules

In response to industry calls for a more flexible regime

Sahar Nazir
clock 08 December 2025 • 2 min read
Barclays weighs bid for £2.5bn Evelyn Partners as major banks circle – report

Barclays weighs bid for £2.5bn Evelyn Partners as major banks circle – report

NatWest and Lloyds Banking Group reportedly among firms considering offers

Sahar Nazir
clock 08 December 2025 • 1 min read
Andrew Goodwin on the Budget: Three key lessons for advisers

Andrew Goodwin on the Budget: Three key lessons for advisers

'Pretty much everybody has taken a hit'

Andrew Goodwin
clock 08 December 2025 • 4 min read