26 Mar, 2008
Financial Services Consumer Panel says it is disappointed that
there had not been more independent input into the FSA's
internal review of Northern Rock.
The FSCP says that
the FSA should be congratulated for acknowledging its shortcomings
but that independent auditors could have provided a wider
Panel Chairman John
Howard says: "The FSA concludes that even if supervision had
been acceptable it was by no means the case that that would have
changed the outcome.
to me that the events surrounding the failure of Northern Rock,
including the sudden collapse in credit markets, were testing the
limits of regulation anyway. No regulator can guarantee to prevent
all failures. In those circumstances, a realistic compensation
scheme which pays out quickly is vital to prevent another bank