FSA come under attack

The Financial Services Authority has been heavily criticised for failing to act fast enough in the Northern Rock fiasco, according to a new Government report due to be published tomorrow.

Commissioned by the Treasury and compiled by a select committee of MPs, the report has been examining the reasons behind the collapse of the Newcastle-based bank and is expected to criticise both the FSA and the Bank of England’s roles, including the decision not to inject liquidity into the banking system last summer when the effects of the credit crunch first became apparent.