Bank run 'could have been avoided'

AOL Money Staff
Hector Sants
Hector Sants

The outgoing head of the financial services regulator has claimed that the run on Northern Rock could have been avoided if his advice had been taken to help Lloyds TSB take over the ailing bank.

Hector Sants, who is stepping down as chief executive of the Financial Services Authority at the end of the month, said he urged the governor of the Bank of England, Sir Mervyn King, and the then chancellor Alistair Darling in 2007 to provide liquidity support so that Lloyds could buy Northern Rock.