Northern Rock was considered a 'low risk'
Updated on 09 October 2007
The Financial Services Authority has admitted serious lessons must be learned in the wake of the Northern Rock crisis.
Top executives at the FSA have told MPs its supervisory role must now be improved.
The city regulators said they had not been alone in failing to realise the extent of the bank's difficulties, although Northern Rock itself now looks destined to survive.
The Government's 100 per cent guarantee for all existing savers has just been extended to new customers and the chancellor is due to make a further statement about the bank later this week.
When the FSA's chairman and chief executive appeared before MPs, they were willing to conceed some lapses in their reigme but the committee was frustrated by what they saw as a refusal to give straight answers to other questions.
