The time when the Gordon Brown took the office in the year 1997, he crafted out the Financial Services Authority which was an act of political opera in an attempt to improvise the regulatory system. But later this week, George Osborne, along with his current successor, banned Mr. Brown's creation.

At the Mansion House, the chancellor decided upon the plans to mingle up many of the FSA's operations into the Bank of England.

The only serious issue is that the markets and consumer protection shall take it to the monetary authority. Now the Mervyn King, governor of the Bank, is in accord with the enormous range of policy.

During the time of his rule, Mr. Osborne, thought to paint the blame for the crisis on the labour party. At the very time the labour party decided to stop the regulatory system established by them as an easy way to score soaring points.

But still after that the idea remained pending due to the post-election coalition talks.

However the reform of the financial regulation is necessary but the system somehow failed to do so. Although it was not the fault of the responsibilities divided amongst the Treasury, the Bank and the FSA. According to Lord Turner, chairman of the FSA, pen down that the successes and failures of the bank regulators in the world before the credit crunch seemed to be uncorrelated with choice of structure. But it was the obligation of the bank regulation, not the watchdogs which matters here.