10 Mar, 2008
Matthew Goodburn | 09:49:30 | 10 March 2008
of the seven Financial Services Authority (FSA) officials who
worked on the Northern Rock team in the run up to the disastrous
events of last August have resigned from the financial watchdog.
An FSA spokeswoman said the five had left but refused to name the
individuals involved and declined to say where the remaining two
people were now working within the organisation.
She said: 'Five of the seven people involved who worked on the
Northern Rock team from January 2006 to July 2007 have left the
FSA. None were given compensation.'
The FSA has been accused of not fully appreciating the scale of the
funding and liquidity issues facing the bank due to the nature of
its business model. Some commentators have suggested the high level
of turnover at the FSA exacerbated the problems experienced by the
Chief executive Hector Sants, who took over from John Tiner just
days before the liquidity crisis hit the financial system last
July, admitted recently to a House of Commons Select Committee that
Northern Rock had not had a full supervisory healthcheck for 18
months at the time when its shortcomings were fully exposed last
Rock's chief executive Adam Appleyard and chairman Matt Ridley
resigned over the debacle late last year but so far no Government
or regulatory official has publically done so.
The FSA's internal auditor Rosemary Hilary is due to release a
report analysing the FSA'a handling of the crisis later in the