MINISTERS are facing new fallout from the Northern Rock crisis today as opposition MPs demand urgent action to prevent a repeat of the run on the embattled lender.
Bank of England Governor Mervyn King’s call for a legislative overhaul of banking regulations was echoed by shadow chancellor George Osborne.
In evidence yesterday to MPs on the Treasury select committee, the Governor, who has come under pressure over his handling of the crisis, said a secret intervention would have prevented the rush of savers looking to withdraw their money.
In a letter to Chancellor Alistair Darling, Mr Osborne said reform was an “urgent priority” and pressed for talks and early legislation when Parliament returns next month.
Liberal Democrat Treasury spokesman Vince Cable laid the blame for the crisis squarely at the door of Number 10, saying the supervision system for banks was flawed.
