The watchdog growls
Last night I interviewed Sir Callum McCarthy, chairman of the City watchdog, the Financial Services Authority, about the run on Northern Rock and the wider crisis in the financial markets. McCarthy said the era of cheap money based on banks “mispricing risk” was probably over. That may push up the cost of borrowing for all of us. But in the long term, it should put the economy on a more sustainable footing.
You can watch the interview in full by clicking here.