The Bank of England is expected to announce in the coming weeks where it is to house the staff of the new Prudential Regulation Authority.
Though it is far from the only cause of the banking crisis, a lack of communication between banking regulators and those responsible for financial stability was far from ideal. Recognising this, the Bank has been looking for space for the PRA a short walk from Threadneedle Street, rather than out in Canary Wharf, where regulators are now based as part of the Financial Services Authority, which is a 12 minute train ride away.
Whether or not this will lead to regulators and economists spotting the next crisis over the water cooler, it is difficult to say. There were, after all, crises when both were housed in Threadneedle Street. Still you can’t imagine it doing much harm. Read more