The Financial Services Authority and the Bank of England are both set to gain extra powers under legislative proposals to be announced by UK Chancellor of the Exchequer Alistair Darling this week, despite heavy criticism of the FSA in a report today outlining the results of the Treasury Select Committee's investigation into the Northern Rock crisis.

The Treasury Select Committee today called for greater bank oversight responsibility to be handed to the Bank of England rather than the Financial Services Authority, UK Chancellor of the Exchequer Alistair Darling’s preferred choice for new intervention powers. Its report on the matter is attached.