The Financial Services Authority's internal report into Northern Rock will be presented to its board this week and concedes that the regulator made mistakes in its handling of the Newcastle-based lender, The Guardian reveals.
Hector Sants, chief executive of the FSA, commissioned Rosemary Hilary, the regulator's director of internal audit, to conduct a "lessons learned" review of its regulation of Northern Rock between January 2005 and 9 August last year.
The FSA has already conceded to the Treasury select committee of MPs that its decision to regard Northern Rock as a "low-probability risk" was a mistake and that its regulators had not made regular enough visits to the former building society. The FSA is still responsible for regulating Northern Rock even though it was nationalised last week after a protracted six-month attempt to find a buyers.
THE SURGE IN the price of oil is set to unleash a tsunami of petrodollars onto financial markets, according to Morgan Stanley, The Telegraph reports.
With the price of crude oil skirting the $100-a-barrel mark, strategists at the investment bank reckon as much as $2 trillion of petrodollars earned by the world's oil exporters will need to be invested this year.
Many analysts expect oil, which first touched the historic $100 a mark in January and then closed above the level for the first time this month, to remain at lofty levels this year as a combination of higher demand from fast-growing economies such as China and dwindling supply leaves refineries struggling to produce sufficient oil.
THE DIFFICULTIES IN the housing market have forced a sharp reduction in the forward order book at Persimmon, one of Britain's largest housebuilders, with the volume of inquiries for new homes also sharply lower in the first months of this year, according to The Times.
Persimmon has already reported a significant slowdown in legal completions last year, off almost 5%. The forward order book for the current year stands at £1.05bn, a decrease of almost 20% on this time last year.
Chief executive Mike Farley said during September the housebuilder had seen a loss of consumer confidence, with cancellation rates soaring to 30% as nervous buyers took flight.
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