UK: Bradford and Bingley plc - another case of regulatory failure?

For the second time the Government has made use of powers in the Banking (Special Provisions) Act 2008 to take a bank into public ownership. In a statement published by the FSA it is explained that Bradford and Bingley's UK and Isle of Man retail deposit business, together with its branch network, have been transferred to Abbey National plc. The remainder of Bradford and Bingley's business is now in public ownership.

In an interview with the UK's Channel4 news the FSA's new chairman, Lord Turner, explained that Bradford and Bingley's business model suffered the same weaknesses as that adopted by Northern Rock.  But where was the FSA?  

Note:

Information about the FSA's internal review of its supervision of Northern Rock is available here.