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Northern Rock nationalisation

Chilling plausibility of bank’s ‘war game’

Published: May 30 2009 00:03 | Last updated: May 30 2009 00:03

The holes in the UK’s strategy for dealing with the potential collapse of a big financial institution became glaringly apparent in late 2003 in a discussion between Callum McCarthy, newly appointed chairman of the Financial Services Authority, and Mervyn King, the equally freshly minted governor of the Bank of England.

In the event of disaster, they realised, there was no blueprint detailing where they should go nor who should ring whom.

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