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“Northern Rock risk revealed in 2004” | FT

It appears the weakness in the UK banks that showed first when the crisis hit, were foretold 5 years ago in a BoE simulation.

Northern Rock risk revealed in 2004 | 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.

Written by Colin Henderson

May 29, 2009 at 19:51

Posted in UK

Tagged with , ,

2 Responses

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  1. Presumably this led to Sir James Crosby being invited in for afternoon tea by the FSA, so they could offer him the role of Deputy Chairman.


    June 1, 2009 at 09:45

  2. @Pragmatist … indeed !

    Colin Henderson

    June 1, 2009 at 11:52

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