Northern Rock Report
Published / Last Updated on 21/02/2008
Northern Rock Report
The Treasury select committee report into the run on Northern Rock has called for a tightening of how banks are regulated. Some of its recommendations are a call for a single authority to be given new powers in handling failing banks and the establishment of a special resolution regime for failing banks to enable the continued smooth running of such a bank, while measures are taken to restore it. It also recommended setting up a new deposit protection fund to allow the speedy release of funds.
The report concluded that the directors of Northern Rock were to blame for its downfall. It also recognised that the Financial Services Authority (FSA) had also failed in its duty as a regulator.
Our view
No ‘heads have rolled’ at the FSA or the Treasury. This is a joke. Tight regulation should already have been in place. It is all well and good creating scares among small financial advisers about financial solvency but ignoring where our money is actually invested i.e. a Bank, is unforgiveable.
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