Banking regulation

I was quite interested in the reports of the Mansion house speeches by Mervin King, the Governor of the Bank of England, and Alistair Darling the alleged Chancellor of the Exchequer.

The bottom line appears to be this:

Alistair says that his predecessor is not the bringer of doom, and there is nothing wrong with the current regime, though obviously the Bank of England has to take responsibility to make the system stable.

Mervin says that's all well and good, but if you want us to make the system stable, is there any chance we could have the powers back that the bringer of doom took away from us when he created the ridiculous tri partite system back in 1997.

Needless to say Alistair is in a difficult position, because his boss is Gordon Brown, the bringer of doom.

The BBC has this as a report and this from Robert Peston.