FSA regulation “failed”

Northern Rock has exposed “systematic failure” at the regulator

An inquiry into the events surrounding the run on Northern Rock has accused the Financial Services Authority (FSA) of failing in its regulatory role. The Treasury Select Committee report, never known to give the regulator an easy ride, laid the principle blame for the bank’s problems at the feet of the bank’s directors but added that the “systematic failure” of the FSA “contributed significantly to the difficulties and risks to the public purse”.