View more on these topics

Chancellor can direct BoE in crises

The Chancellor will have the power to direct the Bank of England during future financial crises, under new proposals.

Guidance on the Financial Services Bill, published last week, says: “The Chancellor may deploy the power of direction following notification by the governor of a material risk to public funds. Such a change will enhance accountability for the use of public money in a crisis by putting beyond legal question where responsibility lies – with the Chancellor and the Treasury, accountable to the wider public through Parliament.”

The Government says the power is unlikely to be needed.

The Treasury select committee and the joint committee on the draft bill were both concerned that the powers were not clear enough on who would be in charge during a crisis.

Writing in his memoirs about the 2008 banking crisis, former Chancellor Alistair Darling wrote: “My frustration was I could not order the Bank to do what I wanted. Only the Bank of England can put the necessary funds into the banking system.”

Recommended

Ex-Credit Suisse traders charged by SEC in £1.9bn bond scam

Four former Credit Suisse investment bankers and traders have been charged by the SEC after allegedly overstating the price of £1.9 billion in sub-prime bonds. The Securities & Exchange Commission alleged that Kareem Serageldin, former global head of structured credit, David Higgs, former head of hedge trading, and two mortgage bond traders took part in […]

3

Standard Life cuts with-profits bonuses for 750,000 savers

Around 750,000 Standard Life customers will see their with-profits bonus growth rate cut following a review by the provider. Savers holding unitised with-profits life plans with a 3 per cent price growth guarantee and unitised with-profits pensions with a 4 per cent price growth guarantee will see no change in their bonus rates, despite the […]

Allianz Technology Trust – April 2017

Welcome to the latest update for Allianz Technology Trust PLC from the Trust’s portfolio manager, Walter Price. Portfolio review The Trust’s NAV returned 4.3% , outperforming the Dow Jones World Technology Index return of 2.8%. In US dollar terms, the portfolio gained 4.8%. During the month, stock selection contributed to relative performance, and industry allocation […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment