More details will be given to Parliament today

The Chancellor of the Exchequer George Osborne took his annual Mansion House speech to announce yesterday evening the repatriation of the powers of the authority of financial services (FSA) Regulation British within the Bank of England (BoE). For those who wants to also formalize the role of supervisor of the systemic risk of the Central Bank of its country, it is important it, as a lender of last resort, know in detail the financial institutions which depend on it. The young Minister of Finance of the United Kingdom believes that the tripartite system, which was based on the FSA, the BoE and the Treasury, has failed "d e dramatically", he said in the afternoon at Westminster, as evidenced by the financial crisis of the past two or three years. It had been implemented by labour shortly after their arrival to power in 1997 and a raised first envy of financiers from around the world, including Wall Street, for his "light touch".

The FSA, who has been very active in the field of combating financial crime these past months, certainly in order to restore its image, "will cease to exist in its present form". More details will be given to Parliament today.

George Osborne key announcements were the following:

The Bank of England, whose main function today is to determine the monetary policy of the Sterling area, should regulate itself individually, banks like the US Federal Reserve. "The BoE must be of the micro-prudential powers," said. It is clear that it needs to better understand what is happening within the banks. "A subsidiary of the BoE of regulation will be created and, surprise, it will be chaired by Hector Sants, the Director General of the FSA which was however soon leave and who will become Governor Assistant of the Bank.

The BoE will be equipped with tools to regulate credit cycles, i.e. to avoid that too much debt do accumulate in the system, to fulfil its mandate of so-called macro-prudential supervision. A financial policy Committee will be created and its mission will be to ensure the financial stability of the system.

An agency for the protection of consumers of financial products will be created to regulate the conduct of financial institutions in relation to the general public.

A market authority to verify the integrity of the British square "to preserve its reputation for transparency and efficiency" is launched.

The Government will honour its commitment for the creation of a single agency for the Suppression of serious economic crimes, to put an end to the dispersal of the authorities responsible for dealing with this type of problem.

John Vickers, former Chief of the BoE economist and former boss of the authority of the good uses in Affairs (Office of fair trading), Chair in addition the commission should separate the universal banks in banking retail, with public problem guarantees, and banks in investment, not protected by the State. The outcome of the work of this entity, which will also study the impact of its decision on the United Kingdom banking competition, is far from certain, even if the Liberal Democrats in the coalition to power as Minister Vincent Cable argued for a separation. For many specialists, the risk of relocation of HSBC and Barclays is large and the Conservatives will not want to take this risk.

George Osborne has also confirmed that he would well impose a tax on banks to finance the cost of the protection of so-called banks too big to fail without catastrophic impact on the entire system. The details of this tax could be specified on 22 June on the occasion of the presentation of highly anticipated budget for emergency of the new Government.