FSA Chief questions Darling role in UK banking crisis

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Former Chancellor Alistair Darling has new questions to answer over his role in the banking crisis according to FSA chief executive, Hector Sants.

Mr Sants claimed the Labour politician ignored advice which could have prevented the run on Northern Rock, the first bank to require a bailout from the UK taxpayer.

Mr Sants criticisms, revealed in an interview with the BBC, add to recent revelations over Mr Darling’s economic failures – including claims by the Bank of England governor last month that action during Alistair Darling’s tenure as Chancellor had been “too late” to prevent the banking crisis causing a recession, which led to the sharp increase in unemployment.

SNP Treasury spokesperson Stewart Hosie MP – a member of the Treasury Select Committee – said:

“Hector Sants raises new questions over the true extent of Alistair Darling’s culpability in the banking crisis – it is extraordinary that the former Chancellor apparently ignored advice which could have prevented the run on Northern Rock.

“These revelations lift the lid on Labour’s economic mismanagement, and ring true given the comments from the Bank of England governor last month over Alistair Darling’s failure to act on economic warnings.

“Alistair Darling’s failure to act brought on the banking crisis, causing a recession, which led to the sharp increase in unemployment.

“For too long Labour have been trying to pretend that the economic crisis has had nothing to do with them. Alistair Darling previously blamed the recession on the problems in the banking sector – and now we know those banking problems are a direct result of his handling of things when he was Chancellor.

“For the people of Scotland, the question is how much they can trust the word of those anti-independence politicians who are culpable for making a mess of the economy.”