Alistair Darling is all set to release his banking reforms despite Bank of England Governor Mervyn King's declaration that he had not been told about the changes made by the Government.

Treasury is expected to announce a wide range of bank regulations to overhaul the system. It is said that according to the new release the Bank of England governor will not be able to any thing more than issuing sermons or organise burials at times when the financial system is on the verge.

Lord Turner, chairman of Financial Services Authority has suggested that a new committee should be set up combining members from the Treasury, the Bank and the Financial Services Authority.

To make bank shareholders assume a higher role in ensuring responsible practices, requiring directors with key roles like heading the audit committee, are some of the ideas that are expected to be included in new regulations.

Sources from the banking industry informed that there was a cold war going on between the Treasury and the Bank of England.

Mervyn King, the governor of the Bank of England is of the opinion that he is getting his new legal responsibility for financial stability with out any authority to stop new crises emerging. On the other hand, the Treasury fears that handing powers such as limiting credit in boom years, to the Bank, may aggravate public fury.