Andrew Tyrie

Claire Jones

Andrew Tyrie, the chairman of the Treasury Committee, is concerned that banks are at risk of a severe liquidity drought, and wants “reassurance” from the Bank of England and the Financial Services Authority that they are “examining carefully” what they can do to ensure we don’t get a repeat of the 2008 panic.

His fears of a liquidity shortage are warranted. But he is wrong to target the Bank and the FSA in his letters to Hector Sants, the FSA’s chief executive, and the governor.  

Claire Jones

A barometer of the Bank of England’s interest, or otherwise, in financial stability has been to calculate the proportion of expenditure devoted to it relative to monetary policy.

Take a recent grilling of chairman of the Bank’s court Sir David Lees, and some of his fellow members, by Treasury Committee chair Andrew Tyrie: