Run on the Rock

"Treasury Committee calls for creation of major new post within Tripartite Authorities in wake of Northern Rock"

The period from Friday 14 September 2007 to Monday 17 September saw the first run on the retail deposits of a United Kingdom bank since Victorian times. In this inquiry the Committee analysed the causes and consequences of the run on Northern Rock, and the lessons to be learnt from it. The Committee emphasised the advantages of legislative change on a cross-party basis and made proposals for such change, and for reforms of the Tripartite arrangements, on that basis.

The Committee published its Report 'The run on the Rock' on the 26 January 2008. The Committee recommended that a single authority be given new powers for handling failing banks, together with responsibility for a new Deposit Protection Fund.

Report | Oral and Written Evidence | Press notice | Gov Response

Oral evidence

As part of this inquiry the Committee held the following evidence sessions: (to access the transcripts of these sessions please follow the link above)

Witnesses: Rt Hon Alistair Darling MP, Chancellor of the Exchequer, Mr John Kingman, Second Permanent Secretary, and Mr Clive Maxwell, Director, Financial Services, HM Treasury.

Witnesses: Ms Angela Knight CBE, Chief Executive, British Bankers' Association; and Mr Adrian Coles, Director General, Building Societies Association.

Witnesses: Sir Callum McCarthy, Chairman, and Mr Hector Sants, Chief Executive, Financial Services Authority; Ms Loretta Minghella, Chief Executive, Financial Services Compensation Scheme.

Witnesses: Mr E Gerald Corrigan, Managing Director and co-Chair of the Firmwide Risk Management Committee, Goldman Sachs; Lord Charles Aldington, Chairman, Deutsche Bank, London Branch; Mr Jeremy Palmer, Chairman and CEO, Europe, Middle East and Africa, UBS; and Mr William Mills, Chairman and Chief Executive of City Markets and Banking, Europe, Middle East and Africa, Citigroup.

Mr Richard Sexton, UK Head of Assurance, and Mr John Hitchins, UK Banking and Capital Markets Leader, PricewaterhouseCoopers

Mr Chris Hitchen, Chairman of the National Association of Pension Funds and Executive Chairman of the Railways Pension Trustee Company; Mr Peter Montagnon, Director of Investment Affairs, Association of British Insurers, Mr Guy Sears, Director, Wholesale, Investment Management Association, and Mr David Pitt-Watson, Chairman, Hermes Equity Ownership Service

Witnesses: Professor Willem Buiter, LSE; and Professor Geoffrey Wood, CASS Business School, City University.

Mr Paul Taylor, Group Managing Director and Global Head of Sovereign, Public Finance, Corporate and Financial Institution Ratings, and Mr Charles Prescott, Group Managing Director, Financial Institutions, Fitch, Mr Michel Madelain, Executive Vice President, and Mr Frédéric Drevon, Senior Managing Director, Moody's, and Mr Ian Bell, Managing Director and Head of European Structured Finance and Mr Barry Hancock, Managing Director and Head of European Corporate and Government Services, Standard and Poor's

Witnesses: Rt Hon Alistair Darling MP, Chancellor of the Exchequer, Mr Nicholas Macpherson, Permanent Secretary to the Treasury, Mr Mark Neale, Managing Director, Budget, Tax and Welfare, Mr Richard Hughes, Team Leader, Comprehensive Spending Review, Treasury, and Mr Clive Maxwell, Director, Financial Services, Treasury.

TUESDAY 16 OCTOBER 2007     
Witnesses: Dr Matt Ridley, Chairman, Mr Adam Applegarth, Chief Executive, Sir Ian Gibson, Senior Non-Executive Director, and Sir Derek Wanless, Non-Executive Director, Northern Rock.

witnesses: Sir Callum McCarthy, Chairman, and Mr Hector Sants, Chief Executive, Financial Services Authority.

Witnesses: Mr Mervyn King, Governor of the Bank of England, Sir John Gieve, Deputy Governor Responsible for Financial Stability, Mr Paul Tucker, Executive Director for Markets, Ms Kate Barker, External Member of the Monetary Policy Committee, and Dr Andrew Sentance, External Member of the Monetary Policy Committee, Bank of England.


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    • Reports and associated evidence – Reports of Committee inquires. This category may also include Special Reports where they are used by a Committee to bring matters relating to conduct of its business to the notice of the House.
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