FSA pushes for covert Bank support

The Financial Services Authority (FSA), the UK's financial regulator, has devised a proposal to allow the Bank of England to provide lender-of-last-resort support in secret.

The move is a bid to prevent a recurrence of the run on Northern Rock, the beleaguered British mortgage lender.

A leak from inside the Bank that the lender was receiving lender-of-last resort support prompted the run on the Rock, the first in the UK since the 1860s. But a run is likely to have occurred regardless of the leak

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