Ex-BoE supervision head criticises FSA

According to Peter Cooke, a former head of banking supervision at the Bank of England, the Northern Rock crisis revealed the need for a proper "mechanism for crisis management", a greater official focus on liquidity rather than solvency and more transparency, Justin Keay, editor of the Financial Regulator, writes.

Of particular concern was the opacity afforded to banks and their ability to remove special purpose vehicles off their balance sheets.

Speaking in London on Wednesday, Cooke said tha