Robert Peston’s latest column states that “the part of the FSA that monitors banks, insurers and other financial institutions to prevent them taking excessive risks” will now report in to the Bank of England.
His column says: “In other words the Bank of England would have ultimate responsibility for banking regulation and supervision as the "owner" of the reconstructed and slimmed-down FSA. But the financial regulator would retain its own board and - to an extent - its own identity.”
George Osborne is expected to announce the move at his Mansion House speech on Wednesday night.
