7/2, 2:48 PM (Source: TeleTrader)
more TeleTrader news

Bailey against Treasury plan to overrule regulators - report

Governor of the Bank of England (BoE) Andrew Bailey, is opposed to Treasury plans that would allow ministers to overrule financial regulators in key areas of City regulation, Sky News reported on Saturday.

According to a source familiar with the matter, the so-called "call-in power" clause has caused friction between the Treasury and the Bank of England. Such stipulation would undermine perceptions of the Bank's independence, according to Bailey, despite the fact that the bill would have no effect on the Bank's ability to set interest rates.

According to one source, the new authority to overrule the Prudential Regulation Authority (PRA) would be kept in reserve and used seldomly.

Baha Breaking News (BBN) / AB