A supposed rift between the FSA and the Bank of England over the bail-out of Northern Rock will be the basis of a grilling Mervyn King is likely to be subjected to by Treasury committee MPs today.
According to reports, MPs will demand that King and other members of the BoE's monetary policy committee (MPC) throw light on suggestions that the regulator repeatedly urged the Bank to intervene earlier in the crisis at the mortgage lender.
The grilling is expected as MPC members come before the Treasury committee to discuss this week's inflation report and follows reports that the FSA pressed King to widen the types of collateral the BoE would accept when lending to financial institutions.
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