March 26, 2008: British Financial Watchdog Admits Failures over Northern Rock Collapse

The British Financial Services Authority (FSA) admits failures in its supervision of recently nationalized mortgage giant Northern Rock. The FSA admits it is guilty of “a lack of adequate oversight and review” of the troubled bank, adding that too few regulators were assigned to monitor it. However, the FSA argues it should continue to have responsibility for regulating the banking system and says it will overhaul its procedures as a result of the weaknesses identified. [BBC, 8/5/2008]