Two highly readable Reports on the lessons learnt from the Northern Rock debacle have been published recently. The first is the Treasury Committee Report The Run on the Rock published on January 26, 2008. The second is Financial stability and depositor protection: strengthening the framework published jointly by HM Treasury, the Financial Services Authority (FSA) and the Bank of England on January 30, 2008. The publication of this document launches a consultation on the proposals contained in it for domestic and international action to enhance financial stability. This blog will deal mainly with the Treasury Report.
The Treasury Report covers five areas: (1) Strengthening the financial system through domestic and international actions; (2) Reducing the likelihood of banks failing; (3) Reducing the impact of failing banks; (4) Deposit insurance: and (5) Strengthening the Bank of England and improving the operation of the Tripartite Arrangement.
-Lessons from the Rock