Based on the assumption that a new broom will always sweep clean, and the UK financial system is certainly in need of a very large broom, comes the announcement from Shadow Chancellor” George Osborne, who is also active as financial spokesman for the Conservative Party, that the first steps that they would take if and probably when the Conservatives get into power is to dismantle Britain’s system of financial regulation that proved to be highly unsuccessful and return power to the Bank of England, which they claim would avoid a repeat of the current banking crisis.

The Financial Services Authority was established only ten years ago by Gordon Brown when he was UK Chancellor of the Exchequer to act as supervisory role in handling the affairs of the major banks, building societies as well as other major UK financial institutions. It would be a brave man indeed who would say that the FSA covered them in glory during this period, and it would be understandable that David Cameron and George Osborne would like to see the Authority dispatched to the history books.

What Cameron and Osborne would like to see is a return to overall authority of the UK financial system by the "old lady of Threadneedle Street" otherwise known as the Bank of England? Bank Governor, Mervin King is reportedly acting a little coy on the suggestion, but the general impression is that he would be as pleased as anyone to see the FSA disappear of into the sunset.

According to a brief manifesto presented by Messrs. Cameron and Osborne at a Press Conference on Sunday, in addition to the BOE, a Consumer Protection Agency would be formed with the role of handling some of the day to day problems in establishing the new framework.

The Conservatives hope that a new and more powerful central bank would be more capable of monitoring the health of the financial system, as well as setting capital requirements and leverage limits for the banks, and prevent the risk taking, profit hunting and bonus scalping policies of the past that brought the UK banking system to its knees. Only time will tell.

• Financial Reformation: Banks, Brokers & Middlemen No More? In an older post that made the rounds with the...
• How To Find A Great Savings Account When looking for the best savings accounts available today, it...
• Just Released Secrets About how to get free leads Building a successful online business is a plus for anyone...

Tags: Bank of England, British Economy, Chancellor of the Exchequer, Conservative party, Conservatives, Credit Crunch, Financial Services Authority, FSA, George Osborne, Gordon Brown, Money, Recession, UK Banks, UK financial, UK Recession

Anyone who makes a practice of observing Prime Minister Gordon Brown cannot have failed to notice that the “hand dog” look that has become his trademark seems to have grown even more profound in recent weeks. The expenses scandal which although its smear reach every corner of the house seemed to affect him more than anyone else. This is understandable when you consider that he the leader of the house.

While this scandal refuses to go away, there is a new one arising that can be pinned directly on to Gordon and his crew, and has already led to cries of “dishonesty” from the opposition Conservative party.

George Osborne, the shadow chancellor, has being issuing some pretty strong accusations against the prime minister stating that he “basically misled the House of Commons”.
The opening for attack came when Brown obviously pressurised and showing it, during a heated prime minister’s questions session proclaimed that “UK capital expenditure will grow until the year of the Olympics”. Osborne, a slick political operator, immediately picked up on the fact that Gordon’s announcement was in direct contradiction to the official Treasury’s projections published in this year’s Budget red book.

What Brown’s obvious slip of the tongue and its later less than objective interpretation from George Osborne has led the Conservative’s to open the book on the whole affair and have succeeded in unearthing a few more jewels, to be used to weaken Brown and the Labour party in the run up to a now eagerly anticipated general election. An election that is more or less guaranteed to see an end to the Brown government, with the Prime Minister only has succeeded in serving for two years. That may be a bitter pill for the man to swallow, especially as Tony Blair kept him waiting in the wings for a whole decade.

• Another Housing Article As if there wasn't enough bad news floating around about...
• 101 Year Old Texana Hollis Evicted From Her Home Of 58 Years! I just came across the story of Texana Hollis -...
• The Price of a World Series Championship It's being reported today that the New York Yankees have...

Tags: Conservative party, Economics, Economy, Financial News, Gordon Brown, Tony Blair