BoE to control FSA; Commission clamp-down on banks

Chancellor George Osborne is set to reveal this week the Bank of England will take overall charge of regulation of the financial sector and have "oversight" across the FSA.

However, it will also be a tough week for the banks as a major new report calls for an urgent shake-up of the sector, including stopping commissions to front-line staff. Osborne will say in his Mansion House speech that although the FSA will retain powers over individual banks and other finance sector organisations, the BoE will have lead authority, according to reports. Treasury sources say the move echoed similar developments to increase the power of central banks in America and France. Business secretary Vince Cable has also given the clearest indication yet Britain's leading ba...