Tough new rules for banks - Darling

Banks will be subjected to tough new rules to help prevent a repeat of the financial crisis, Chancellor Alistair Darling has said.

Setting out his White Paper on financial reform to the House of Commons, Mr Darling said banks faced a "back stop" rule to prevent them lending too much.

He plans to set up a new council for financial stability as well as forcing banks to hold more capital, and draw up emergency plans for their own demise.

"Financial institutions in many countries simply took too much risk," the Chancellor said.