Professor Edward Kane:

It is very dangerous to have prudential regulation in the Central Bank because the Central Bank is pushed in a lot of directions in terms of inflation and unemployment. As I said, the regulator should be thought of as running a trust fund for the equity position of taxpayers. This can be done as a single-minded goal. Central Banks will never have that aim as a single-minded goal. It would be hard enough even to get the regulator to do so. That is why involving private trustees also as co-trustees would be advantageous.