The U. K. Government proposal to eliminate the Financial Services Authority and give majority of its authority to the Bank of England will not alter how banks are controlled as the European Union takes on a bigger role, attorneys say.

Last night, Chancellor of the Exchequer, George Osborne said that he would substitute the watchdog with three bodies in the imminent two years.

Osborne held the old structure created by Gordon Brown in 1997 responsible for being unsuccessful in avoiding the most horrible fiscal disaster since the Great Depression that resulted in the bailouts of Royal Bank of Scotland Group Plc. and Lloyds Banking Group Plc.

The European Union is preparing for an overhaul of monetary rule, which will witness the formation of three pan-European controllers for banks, securities and insurance.

Lawyers said that the new European regulators might direct the national organizations regarding the future course of bank administration.

Simon Morris, a lawyer with CMS Cameron McKenna in London said, "It is incapable of making any difference because the fundamental rules are being driven by Brussels. It's simply a rebranding, it's like pouring old wine in new bottles".

Osborne said in a speech in London's financial district that a Financial Policy Committee at the bank and a customer defense and markets organization will also be formed.