This is a nice development and more would follow.
The Federal Deposit Insurance Corporation (FDIC) and the Bank of England today announced their agreement to a memorandum of understanding (MOU) expanding their cooperation when they act as resolution authorities in resolving troubled deposit-taking financial institutions with activities in the United States and United Kingdom.
The MOU represents a commitment by the FDIC and Bank of England to enhance their collaboration to promote greater coordination in the face of distress at banks that operate in the two countries and thus protect the wider public interest. It recognizes the importance of close and effective communication about the operations of financial institutions covered by the MOU and differing national laws, consultation on developing issues, cooperative contingency planning for firms covered by the MOU, and supporting the development of appropriate recovery (going concern) and resolution (gone concern) plans. In such areas, the MOU also underlines the need for the FDIC and the Bank to work closely together with other authorities in the United States and the United Kingdom.
However like US, UK also needs to reorganise and define properly the role of various fin regulators. Bank of England has been given the role of resolution but FSA still looks at the financial system as a whole. Who does what and which fin form comes under which regulator? There needs to be a clarity on these issues.
Bank of England says it is responsible for financial stability but has always positioned itself as a price stability institution.