UK's FSA is self-critical over Northern Rock

LONDON - The UK Financial Services Authority (FSA) has admitted to "key failings" in its supervision of Northern Rock. In a summary of its internal audit review of its handling of the now-nationalised bank, the FSA also set out new management reforms to be urgently advanced into existing action plans.

The first failing, according to the audit, was a lack of supervisory engagement. The FSA team responsible paid inadequate attention to the model pursued by the bank's management as market conditions