Banking reform: Mervyn King 'not consulted' by Treasury

Posted: Thu 25 Jun 2009 8 26 am

The governor of the Bank of England has alarmed MPs by revealing that the government has not properly consulted him over its plans to reform the banking sector, and condemned the budget deficit as "extraordinary".

Mervyn King told the Commons Treasury select committee on Wednesday that he has yet to be shown a draft copy of Alistair Darling's impending white paper on bank regulation.

John McFall, chair of the committee, said it was "unbelievable" that the Treasury and the Bank of England were not working together better, at a time when there is intense interest in avoiding a repeat of the financial crisis.

"The tripartite authorities are a communication black holes, which is worrying," said McFall.

King's comments came after he was asked if he had been consulted on the Treasury's proposals for regulatory reform which are due to be published imminently. He replied: "It depends on your definition of consultation."

The governor continued: "I have not been consulted on what will be in the white paper and I have not seen a draft copy of it," before adding that "no doubt" he would see it before it is published.

snip

http://www.guardian.co.uk/business/2009/jun/25/bankofenglandgovernor-banking

You would have thought that, if you were redesigning the banking system, the first person you would consult would be the well respected governor of the nations central bank.

Wouldn't you?