Banking regulation 'not to blame' Chancellor Alistair Darling is to announce later that he does not plan fundamental reform of the way UK financial institutions are regulated.
Mr Darling will say the current regulatory system is not to blame for the credit crunch, according to speech extracts released by the Treasury.
Instead, he wants to focus on improving the quality of judgement of regulators.
The current system has been widely criticised for failing to prevent excessive risk taking at banks.
The Tories, for example, are planning to announce wholesale changes to current regulations.
The existing tripartite system, which was introduced by Prime Minister Gordon Brown when he was chancellor, relies on the Financial Services Authority, the Treasury and the Bank of England to regulate financial institutions.
On Wednesday, President Barack Obama's government will announce new powers for America's central bank, the Federal Reserve, to oversee the relationships between financial institutions.
In future, the reserve will require interconnected firms to hold more capital in case of a crisis, to help avoid a repetition of events last year when the collapse of investment bank Lehman Brothers threatened to undermine the financial system.
Despite the criticism of the UK system, Mr Darling believes no fundamental shake-up is necessary.
"Mr Darling does not believe that the tripartite model is to blame. He believes institutional reform is less important than improving the quality of the judgements of those who work at the FSA, Bank of England and Treasury," said BBC Business Editor Robert Peston.
Mr Darling also signalled a planned paper on reform of the banking industry will be much less forceful than the Treasury had originally suggested.
The paper, which is expected to be published in about a fortnight, will be a consultative green paper, rather than a policy-setting white paper.
And this bunch of Ostriches thinks that they can win the next election.
Angus
Angus Dei on all and sundry
NHS Behind the headlines
Angus Dei-NHS-THE OTHER SIDE
Mr Darling will say the current regulatory system is not to blame for the credit crunch, according to speech extracts released by the Treasury.
Instead, he wants to focus on improving the quality of judgement of regulators.
The current system has been widely criticised for failing to prevent excessive risk taking at banks.
The Tories, for example, are planning to announce wholesale changes to current regulations.
The existing tripartite system, which was introduced by Prime Minister Gordon Brown when he was chancellor, relies on the Financial Services Authority, the Treasury and the Bank of England to regulate financial institutions.
On Wednesday, President Barack Obama's government will announce new powers for America's central bank, the Federal Reserve, to oversee the relationships between financial institutions.
In future, the reserve will require interconnected firms to hold more capital in case of a crisis, to help avoid a repetition of events last year when the collapse of investment bank Lehman Brothers threatened to undermine the financial system.
Despite the criticism of the UK system, Mr Darling believes no fundamental shake-up is necessary.
"Mr Darling does not believe that the tripartite model is to blame. He believes institutional reform is less important than improving the quality of the judgements of those who work at the FSA, Bank of England and Treasury," said BBC Business Editor Robert Peston.
Mr Darling also signalled a planned paper on reform of the banking industry will be much less forceful than the Treasury had originally suggested.
The paper, which is expected to be published in about a fortnight, will be a consultative green paper, rather than a policy-setting white paper.
And this bunch of Ostriches thinks that they can win the next election.
Angus
Angus Dei on all and sundry
NHS Behind the headlines
Angus Dei-NHS-THE OTHER SIDE
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