FSA to overhaul procedures after Northern Rock failings

The FSA has admitted failing to adequately regulate Northern Rock and said it would be overhauling i...

The FSA has admitted failing to adequately regulate Northern Rock and said it would be overhauling its procedures following the crisis. According to the regulator, the failings stemmed from FSA staff's lack of engagement with Northern Rock management on its "business model vulnerability arising from changing market conditions". It said there had been "a lack of adequate oversight and review" combined with too few resources being directed at the bank. Speaking last week, Hector Sants, FSA chief executive, said it was "clear that our supervision of Northern Rock in the period leading up...