FSA admits failings in Northern Rock crisis

The FSA has admitted lessons can be learnt following the Northern Rock crisis. The authority said...

The FSA has admitted lessons can be learnt following the Northern Rock crisis. The authority said its assessment of market conditions deteriorating as they did had proved incorrect and that is plans to conduct a review to ascertain what lessons it can learn. In a memorandum, the FSA said it had upped its monitoring of credit markets as in July. But it conceded that it did not envisage "stress tests on a liquidity event as sudden and sustainted as the actual streess experienced this summer."