Treasury MPs take on FSA over Northern Rock

Treasury Committee MPs are set to grill the Financial Services Authority over the near collapse of mortgage lender Northern Rock amid suggestions that it is under pressure to overhaul its rules for banks.

This follows the Bank of England's governor Mervyn King being grilled by the same team of MPS over the Northern Rock debacle.

King blamed the near-collapse of Northern Rock on the failure of regulation.

According to reports, bankers and politicians have also been questioning the role the FSA played in the crisis and what it could have done to prevent it.

There is also pressure on Gordon Brown to review the regulation of banks, currently oversight is split between the Treasury, the Bank of England and the FSA.

Further reading:

Bank facing Treasury grilling over Northern Rock

Northern Rock under fire over exec pay rises

FSA: Northern Rock 'solvent'