Financial Times FT.com

Treasury looks to clarify crisis responsibilities

By Scheherazade Daneshkhu and Gillian Tett in London

Published: September 25 2007 21:39 | Last updated: September 25 2007 21:39

Changes to the current hydra-headed system of financial oversight being considered by ministers may include a clear statement that the government has ultimate responsibility during a crisis such as the one that hit Northern Rock.

An informal Treasury review is expected to recommend amendments to the memorandum of understanding underpinning the so-called tripartite system of regulatory oversight in which the Treasury, the Bank of England and the Financial Services Authority share the job of scrutinising the banking system.

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