The chancellor has now set out his detailed proposals for financial services regulatory reform. These seek to address three substantial concerns which became clear in the wake of the banking crisis:

1. The Memorandum of Understanding between the Financial Services Authority (FSA), the Bank of England and Treasury did not adequately clarify who was responsible for crisis management.

2. Responsibility for macro-prudential supervision - ensuring that the banking system as a whole was systemically ?safe? - was left unassigned.

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