
Chancellor's solution will not solve Northern Rock problem says Cable
The chancellor is planning to give the Financial Services Authority more power to deal with failing banks to avoid another Northern Rock-style crisis. The proposals, planned for legislation in May, include giving the FSA the power to seize and protect customers' cash if their bank was to get into difficulties. The Chancellor has ruled out having a special institution designed to take over banks that get into trouble, as happens in the US, but wants to introduce a new Cobra-style response unit to deal with any future financial crises.