The Chancellor, George Osborne made an announcement last night, stating that the Financial Services Authority is to see an end and the Bank of the England has been given comprehensive powers, so as to avert another monetary catastrophe.

The shift is expected to make the new enlarged central bank one of the most influential authoritarian bodies in the world, with accountability for both financial policy and economic regulation.

Just as the function of a central bank in financial strategy is to take the blow bowl away when the group gets going, its function in monetary steadiness should be to hit the bull when the it seems to have gotten a little too wild, Osborne told an audience at London’s Mansion House last night.

The FSA, in the meantime, is to be replaced by a new prudential watchdog that will function as a subsidiary of a beefed-up Bank of England.

From the ruins of the FSA, a new Consumer Protection and Markets Authority will be formed, in order to regulate each and every Company that has been offering financial services to consumers, the Chancellor proclaimed, promising additional information today of what will be the major shake-up of the City regulation in 13 years.