Government 'delays financial regulation changes'

7 July 2009

A key part of the government's plan to make changes to financial regulation has been delayed, it has emerged.

According to the Daily Telegraph, a white paper on the issue that is due to be published tomorrow (July 8th) will not feature information on how banks' balance sheets will be controlled in the future.

The news source suggested that it is now "highly unlikely" that a definitive policy on the matter would be introduced after the next general election.

It noted that the complex issues regarding the development of a "second tool" to be used alongside interest rates in deciding economic policy contributed to delay the introduction of the proposals.

"Perhaps the government thinks by asking enough people, someone will eventually come up with the right answer," partner at law firm CMS Cameron McKenna Simon Morris was quoted as saying.

Shadow chancellor George Osborne recently stated that should the Conservative party come to power, more power could be granted to the Bank of England to give it the ability to regulate the UK's financial market.

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