Bank of England tells MPs it needs powerful voice during bank failures

The Bank of England believes it should have a “powerful voice” in deciding when a failing bank should enter a proposed new special resolution regime, a senior Bank director told MPs yesterday. Sir John Parker told the Treasury Committee there were strong views at the Bank on the matter, which is the subject of a turf war with the Financial Services Authority. Thomas Huertas, head of banking at the FSA, said it would consult and inform the Bank and insisted that the FSA would have no qualms about “pulling the trigger” on a bank that it had supervised.