FSA to admit Rock mistakes - papers 26 Feb

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 protracte...