Summary
'Banking (Special Provisions) Act
2008' addresses recent instability in financial markets across the world,
and in particular the events concerning Northern Rock plc.
These
events have highlighted the need to have robust systems for providing
protection and confidence for depositors, and for intervening when problems at
particular institutions pose threats to the wider financial system.
This
Act makes provision to enable the Treasury in certain circumstances to make an
order relating to the transfer of securities issued by, or of property, rights
or liabilities belonging to, an authorised deposit-taker (i.e. UK-incorporated
banks and building societies) either into public ownership, or to another body
in the private sector. The Bill also enables the Treasury, by order, to amend
legislation so as to facilitate the giving of financial assistance by the Bank
of England to building societies.
'Banking
(Special Provisions) Act 2008' received Royal Assent on 21st February 2008.
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