Saturday, 30 May 2009

NRK - they knew in 2004

From today's FT:

Banking regulators identified Northern Rock as the weak link in Britain’s banking system during secret “war games” held as long ago as 2004, the Financial Times has learned.

The risk simulation planning, conducted by the Financial Services Authority, the Bank of England and the Treasury, made clear the systemic risks posed by Northern Rock’s business model, and its domino effect on HBOS, then the UK’s largest mortgage lender.

The revelation is at odds with the notion that no one could have foreseen the September 2007 collapse of Northern Rock or the subsequent rescue of HBOS, which was sold to Lloyds Bank.


Remind me again; how much did the taxpayer lose with NRK? Has anyone taken responsibility for this catastrophic mess?

4 comments:

Man in a Shed said...

It has to be said that taking responsibility isn't exactly popular these days.

electro-kevin said...

And Gillian Shephard alerted the Government in 2005.

mike said...

I wonder if RBS was also identified. What about the 300 billion in derivatives that RBS hold? Are they worthless?

john miller said...

If they knew a nuclear device was about to explode in London the cabinet would be in New York shopping for Hermes scarves.

They care less than nothing for anyone except themselves.