The Commons Treasury Select Committee's long-awaited report into the Northern Rock debacle will be published on Saturday and is expected to conclude that the Financial Services Authority (FSA) should not be given new powers to intervene to help distressed banks, The Times reports.
Leaks of the report said last night that the FSA does not deserve additional powers, given that it was unable to identify the flaws in the Northern Rock business model and prevent a subsequent run on the Newcastle-based bank. The report is also expected to highlight the Bank of England’s decision not to prop up the banking system with a cash injection last summer as the credit crunch began to take hold. Alistair Darling, the Chancellor, will not escape criticism over his handling of the affair, although the Treasury escapes relatively unscathed compared with the level of criticism levelled...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes