Bank watchdog to get more powers

My Account
Logout

Create an Evening Standard Account

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Welcome! Sign in here

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Forgot your password ?

Registration

* indicates fields that are mandatory

Email *

Password *

Confirm Password *

First name *

Surname *

Postcode *

Country *

Mobile phone number

Username *

Gender *

Year of birth *

When you sign up...

You will have access to all our online competitions, discounted offers and can post comments on our site.

You will also receive The Weekender newsletter sent every Thursday - it’s full of fantastic offers and ideas for the weekend. You can update your email preferences in your account page when you log in.

Other newsletters and emails

Homes & Property Newsletter - Yes I want to receive the weekly email with all the latest news on property in the capital

Occasionally we would also like to send you relevant emails detailing specific offers either from ourselves or carefully selected partners. If you would prefer not to receive these then please tick the appropriate boxes below. We will never pass on your details.

I do not want to receive additional offers and information from the Evening Standard

I do not want to receive additional offers and information sent by Evening Standard on behalf of carefully selected partners

Terms and Conditions

* I have read, understood and agree to be bound by the terms and conditions of Evening Standard

Registration

Mail Sent for Registration Confirmation.

A confirmation email has been sent. Please activate your account by clicking on the activation link sent in your mail box.

The Chancellor of the Exchequer said legislation will come into force which will allow the FSA to seize and protect customers' cash if their bank gets into difficulty.

It is hoped the new legislation will increase customer confidence, avoiding another run on the bank like that seen at Northern Rock branches in September.

"I want to make sure our own legislation is up to the mark in dealing with problems when they arise in future," Mr Darling told the Financial Times.

He said the new legislation will address "gaps in the law" and will include giving the FSA and Bank of England greater powers to get information from banks about their finances.

Mr Darling said banks are currently treated no differently from any other corporation or institution if they get into trouble and insolvency laws make it "quite difficult" to move quickly if there is a problem.

He said he will outline a clear guarantee scheme so depositors know how much of their money is protected but also will make sure they can withdraw their cash quickly.

The government has been looking at systems in America, Canada and Belgium where regulators can appoint someone to help if "trigger points" are reached when an institution is in trouble and needs support, the Chancellor said.

"The trigger points that I have in mind is that once a bank is in financial difficulties, once a bank is using lender of last resort facilities, people know what the rules of the game are at that point.

"You have to be very clear to the people not just in this country but across the world. They need to know what the rules are. It needs to be clearly defined."