Government launches plans to deal with failing banks

The Government has launched a consultation on a new scheme designed to reduce the impact of a failing bank on the economy.

Chancellor of the Exchequer Alistair Darling, said: “No system of regulation can or should prevent the failure of each and every firm, but we must do everything possible to reduce the impact of problems which could pose a wider threat to stability.

“The challenge is to ensure that the Authorities can act quickly and decisively to take appropriate steps to resolve failing banks. These proposals for a special resolution regime give the Authorities the full range of powers they need.”