FSA report expected to admit Rock mistake
FSA’s report out tomorrow expected to admit mistakes over Northern Rock rescue
The Financial Services
Authority’s report out tomorrow is expected to admit it made mistakes when
supervising Northern Rock’s rescue
but is unlikely to produce any dramatic reforms.
The watchdog is expected to admit its focus on customer protection and other
‘conduct of business’ issues may have been at the expense of some prudential
duties, overseeing the viability of banks’ business models, the Financial
Times reports.
The FSA has started to put through some changes, which include the
development of a new risk management team headed by risk expert Colin Lawrence.
More appointments are likely for the new team, the role of which will be to
provide expertise and support to the front-line supervisory teams and more
detailed examination of banks’ risk models.
Further reading:
Rock investors call for judicial review on compensation
Northern Rock cuts 2,500 jobs to reduce balance sheet
Read
story in the Financial Times