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| Northern Rock 'may face MP panel' | |
| (about 1 hour later) | |
| Northern Rock executives may be grilled by MPs over the problems that have beset the beleaguered firm and the implications for the UK banking sector. | |
| The head of the Treasury select committee told the BBC that questioning key people from the market was likely if it was to "dig deep" into the issue. | |
| On Thursday, Bank of England chief Mervyn King faced the committee. | |
| The chairman and chief executive of the Financial Services Authority (FSA), will give evidence next month. | |
| 'Searing look' | |
| Committee head John McFall said that the terms of reference for the probe into the UK's financial instability had yet to be fully established. | |
| But asked whether Northern Rock executives may be called to give evidence, he said: "A lot has happened in the past 24 hours but I have no doubt that if we are going to have a searing look at this issue and dig deep then we will have to look at the market." | |
| We need to reflect and then act to prevent repetition of anxieties and concerns which I recognise and with which I sympathise Sir Callum McCarthy, FSA chairman Northern Rock's share price | |
| Northern Rock shares rose 7% on Friday morning to 198p - having seen about 70% of its value wiped out in the past week since it emerged that it had applied to the Bank of England for emergency funding. | |
| FSA chairman Sir Callum McCarthy and chief executive Hector Sants will give evidence to the Treasury select committee next month. | FSA chairman Sir Callum McCarthy and chief executive Hector Sants will give evidence to the Treasury select committee next month. |
| The FSA has been criticised for not tackling Northern Rock's lending model before the bank hit difficulties. | The FSA has been criticised for not tackling Northern Rock's lending model before the bank hit difficulties. |
| Mr McFall said he also wanted Chancellor Alistair Darling to appear before the committee to give evidence of the Treasury's handling of the affair. | |
| 'Obvious risk' | |
| The FSA appearance, scheduled for 9 October, is expected to see the watchdog challenged over whether it was fulfilling its role properly. | The FSA appearance, scheduled for 9 October, is expected to see the watchdog challenged over whether it was fulfilling its role properly. |
| "The FSA has a lot of questions to answer... about why Northern Rock wasn't identified as the most obvious risk," committee vice-chairman Michael Fallon said during Thursday's hearing. | "The FSA has a lot of questions to answer... about why Northern Rock wasn't identified as the most obvious risk," committee vice-chairman Michael Fallon said during Thursday's hearing. |
| In a speech in London on Thursday, Sir Callum said the events of the last week, which saw a run on the Northern Rock as thousands of people queued to withdraw savings, had "been sobering for all". | In a speech in London on Thursday, Sir Callum said the events of the last week, which saw a run on the Northern Rock as thousands of people queued to withdraw savings, had "been sobering for all". |
| "We need to reflect and then act to prevent repetition of anxieties and concerns which I recognise and with which I sympathise." | "We need to reflect and then act to prevent repetition of anxieties and concerns which I recognise and with which I sympathise." |
| The October select committee hearing was already scheduled but had previously been set to take evidence on the FSA's annual report. | The October select committee hearing was already scheduled but had previously been set to take evidence on the FSA's annual report. |