McCarthy exposes FSA and BoE tensions over N. Rock - papers 10 Oct

Asked about the Governor's actions during a bruising encounter with the Treasury Select Committee yesterday, Sir Callum said: "I think it's possible for people to have different views…There are important questions of balance between the issues of moral hazard and the problem of damage to innocent bystanders." He later refused to answer committee chairman John McFall's questions about whether he "supported the banking industry's pleas for more liquidity". MERVYN KING HAS POURED COLD WATER on hopes that the Bank of England is gearing up for an emergency interest rate cut, saying it will not...