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Banking Bill

I would have thought it a necessary condition of an effective organisation that the buck should stop somewhere. It is therefore important that somebody—some group or institution—should have responsibility for the ultimate decision. In the Bill, the ultimate decision is with the FSA. Clause 7(1) says: "““A stabilisation power may be exercised in respect of a bank only if the FSA is satisfied that the following conditions are met””." It does not say, ““A stabilisation power may be exercised by the FSA only””. So if the FSA is not satisfied, it does not matter what the Bank of England or the Treasury think. Clause 7(1) seems to mean that its power to make stabilisation orders will not be affected.