The Shadow Chancellor has given his strongest backing yet to the creation of a "single, powerful agency" to tackle financial wrongdoing across the economy, in light of the Goldman Sachs fraud allegations. His comments provide further insight into how the UK's regulatory landscape might look if the Conservatives come to power next month.

The US Securities and Exchange Commission on Friday alleged that in a 2007 deal, Goldman deceived clients by selling mortgage securities secretly designed by hedge-fund king John Paulson to profit on a plunge in housing prices.