Northern Rock Collapse Was Avoidable
Published / Last Updated on 12/06/2012
Northern Rock Collapse Was Avoidable.
According to Hector Sants, the outgoing chief executive of the Financial Services Authority (FSA), the collapse of Northern Rock could have been avoided.
Sants has told the BBC, that he recommended Lloyds TSB be granted a loan from the Bank of England to facilitate a takeover of Northern Rock and if the central bank and the government had allowed the loan, the crisis at the bank could have been avoided.
Northern Rock was nationalised in 2008 following its near collapse.
Sants stated that the Bank of England governor, Sir Mervyn King, said the central bank would not provide the money, while Alastair Darling, the Chancellor at the time, said nothing.