Chancellor to extend FSA's powers

The Chancellor, Alistair Darling, proposed giving the regulator the power to seize and protect any customer cash if a bank got into difficulties. Darling announced he would begin a three-month consultation period on what new powers should be given to the FSA to prevent the kind of banking crisis that crippled Northern Rock in the summer of 2007. It has been suggested that the UK might create a special institution to take over failing banks, as in the US, but this was ruled out by the Chancellor. Darling says he wants to bolster the powers of the FSA so that it can quickly respond to any ...