FSA not expected to receive any more power - papers 25 Jan

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 levelle...