The UK financial watchdog, the Financial Services Authority (FSA), has admitted that it failed to regulate Northern Rock adequately.
The FSA said there had been "a lack of adequate oversight and review" by the agency of the troubled bank.
It said too few regulators were assigned to monitor Northern Rock, which ran into trouble in August.
The FSA said it would be overhauling its procedures as a result of the weaknesses identified.
Newcastle-based Northern Rock was nationalised in February after the credit crisis forced it to seek a Bank of England lifeline to fund its mortgage loan book.
Last week it said it would cut about 2,000 jobs by 2011 and reduce its residential mortgage lending by half under plans to turn around its fortunes.
Northern Rock must also pay back Bank of England loans worth about £25bn.
Full Story
It appears that the few regulations that Parliament set on Northern Rock Bank have failed. This may cause Parliament to reform their policies on foreign companies.
The FSA said there had been "a lack of adequate oversight and review" by the agency of the troubled bank.
It said too few regulators were assigned to monitor Northern Rock, which ran into trouble in August.
The FSA said it would be overhauling its procedures as a result of the weaknesses identified.
Newcastle-based Northern Rock was nationalised in February after the credit crisis forced it to seek a Bank of England lifeline to fund its mortgage loan book.
Last week it said it would cut about 2,000 jobs by 2011 and reduce its residential mortgage lending by half under plans to turn around its fortunes.
Northern Rock must also pay back Bank of England loans worth about £25bn.
Full Story
It appears that the few regulations that Parliament set on Northern Rock Bank have failed. This may cause Parliament to reform their policies on foreign companies.
