More questions over the Financial Service Authority Chairman’s judgement

Saturday’s Daily Mail puts it succinctly:

The head of the financial watchdog criticised for not acting sooner to prevent the Northern Rock scandal tried to gag a senior MP who warned the bank was heading for disaster, it was claimed.

Financial Services Authority chairman Sir Callum McCarthy telephoned Lib Dem deputy leader Vince Cable in September and accused him of “scaremongering.”

He told Mr Cable Northern Rock was not caught up in the sub-prime mortgage fiasco in the US.

Hours later the bank admitted it had been hit by the cheap mortgage collapse there.