Gordon Brown's replacement of the Bank of England with a tripartite regulatory system

The narrative that the Labour/BBC alliance still tell is one of Gordon Brown setting up his new system, which for all the faults that people have pointed out post the 'crash' were unforeseen when it was set-up. A Conservatives Blog points out that the official record shows this to be yet another Labour lie:

'Gordon Brown was warned that the changes to the banking system he was bringing in, in particular removing the role of bank regulator from the Bank of England and putting it into the hands of the FSA would lead to a systemic banking failure.

When discussing the bill that passed the changes to the banking system the Conservative Shadow Chancellor, Peter Lilley said:

With the removal of banking control to the Financial Services Authority--the "super-SIB"--it is difficult to see how and whether the Bank remains, as it surely must, responsible for ensuring the liquidity of the banking system and preventing systemic collapse.

And further:

We have no objection to the objective of trying to bring greater simplicity and one-stop shopping to the business of financial regulation, but we fear that the Government may, almost casually, have bitten off more than they can chew. The process of setting up the FSA may cause regulators to take their eye off the ball, while spivs and crooks have a field day. We shall observe closely what is going on in the development of the proposed legislation.'

Now Peter Lilley was particularly hated by the BBC for his Thatcherite roots and in those heady post champagne drinking days at the BBC, no opposition to the New Labour machine was allowed or even contemplated. Those were the days when 'things could only get better' and the hated Tories were irrelevant.

Maybe now that more and more people are realising that Gordon Brown was never an economic genius but a fool with a plan, the press might publicise that yet another foundation of Gordon Brown's reputation for economic competence was foolishness and was seen as such by the Conservatives at the time.