George Osborne promises to put Bank of England back in charge of banking supervision

The Shadow Chancellor has just told the House of Commons that a Conservative government would restore supervision of banks, building societies and other major financial institutions to the Bank of England.

That amounts to the effective end of Gordon Brown's Financial Service Authority.

The process of putting banking supervision back into the Old Lady of Threadneedle Street will be an upheaval and will make the Bank a very, very powerful organisation but it is right to end the cumbersome tripartite system of financial oversight that was a contributory factor to recent events.

I's sure that the late, great Eddie George would have approved of George Osborne's decision.

> Michael Fallon MP in February: The banks failed. The FSA failed. Gordon Brown failed.