FSA forced to borrow £200m as it sinks into debt

According to the Independent on Sunday (IoS), the regulator has drawn on a £100m credit agreement with Lloyds Banking Group and borrowed a further £100m from HSBC. The FSA spent £347m in the past year but raised only £324m from fees and other revenues. Although its cash balance averaged £56m last year, it had fallen to just £200,000 by the end of March, compared with £24.8m in the same month in 2008. As a result of the shortfalls, directors have been tasked with reviewing the organisation's cashflow. According to the IoS, the situation has forced the FSA to draw on the Lloyds facil...