The FSA will admit it made mistakes in supervising Northern Rock, although it will stop short of proposing dramatic reforms. Financial Times, Daily Telegraph

The Financial Services Authority has attracted criticism for its handling of the now nationalised bank and admitted some failings, but its report will shed light on what exactly went wrong.

The watchdog is expected to admit that its focus on customer protection and other 'conduct of business' issues may have come at the expense of some prudential duties overseeing the viability of banks’ business models.