As the credit storm has swept through the City, older bankers have fondly recalled the days when financial crises were resolved behind closed doors at the Bank of England with troubled lenders rescued on the strength of a handshake.

The Financial Services Authority rolled back the years this week when the watchdog orchestrated a rescue for Bradford & Bingley after TPG Capital, the US private equity group, pulled out of a deal to invest £179m in the mortgage lender.