"The reasoning behind the new arrangements is not entirely clear, according to Brian Scott-Quinn, director of banking programmes at the International Capital Market Association Centre, Henley Business School.

"What is very odd is that, because the Bank of England didn?t supervise very well, the present government thinks it is able to do the job it wasn?t able to do [in the 1990s],? Prof Scott-Quinn said."

For the full story see the Financial Times online: http://www.ft.com/cms/s/0/6ce073de-7a4b-11df-aa69-00144feabdc0.html