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• Brown dismisses housing crisis fears (09 04 2008 10:15)
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• Consumer morale 'falls again' (09 04 2008 10:15)
• Bristol & West withdraws deals (09 04 2008 10:15)
• Retirees feel 'unhappy due to no longer working' (09 04 2008 10:15)
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• Brown to announce first time buyers help (08 04 2008 04:15)
• UK bank details 'for sale by thieves' (08 04 2008 04:15)
• Last 100% mortgage to disappear (08 04 2008 04:15)
• High earners 'shut out of market' (08 04 2008 04:15)

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FSA slammed by MP

A Conservative MP has fiercely criticised the Financial Services Authority (FSA), after the watchdog admitted failures in its previous risk assessments of Northern Rock.

The lending bank collapsed last year, after pursuing a risky growth plan of using the money markets rather than customer deposits to raise revenue.

This meant that, when inter-bank lending on the markets dried up as a result of the credit crunch, Northern Rock could no longer service its debts.

Yesterday, the FSA admitted that it had not shown sufficient care in advising the bank on the risks of the plan prior to the crisis.

Now, conservative MP John Redwood has attacked the 'tripartite system', the system through which finance policy is divided between the government and the Bank of England (BoE), with the FSA acting as the regulator, City AM reports.

"Of course we need an FSA, of course we need a BoE, but I think the current division of powers is wrong," he commented.

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