Northern Rock 'may face MP panel'
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."
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.
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 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".
"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.
Source: bbc.co.uk
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