Public must be protected says Cable as report into Northern Rock is published
The Treasury select committee will tomorrow highlight a catalogue of errors by the government and regulators in their handling of the Northern Rock crisis in a damning report on the bank's near-collapse. The committee will make a series of recommendations for reform of the UK's system of financial regulation and is also expected to expose the failings of the Northern Rock board and question why it was allowed to stay in place for several months after triggering the first run on a British bank in 140 years. The Liberal Democrats have written to the Chancellor warning of the dangers of the proposed rescue deal for Northern Rock, warning that taxpayers could lose out if the Government does not ensure that guarantees are able to cover any of the bank's losses.
