26 Mar, 2008
Financial Services Consumer Panel says independent auditors could
have widened the scope of the Financial Services Authority's
congratulates the FSA for facing up to its shortcomings, it says
independent auditors could have provided a valuable wider
John Howard, panel chairman of the FSCP, 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.
This suggests to me
that the events surrounding the failure of Northern Rock, including
the sudden collapsein credit markets, were testing the limits of
can guarantee to prevent all failures. In those circumstances, a
realistic compensation scheme which pays out quickly is vital to
prevent another bank run."