Government failure and the Rock

Well here is one for the file on classic examples of regulatory (aka government) failure in the market. The Financial Services Authority (FSA) has admitted that it gave too few resources over to monitoring the problems building up at Northern Rock - covered in this BBC article and also this piece in the Financial Times. The FSA seems to have been assuming that the Bank of England stood ready to bale out the Northern Rock and there were failings in the oversight of the Rock by supervisory teams sent to look at the Rock’s flawed business model. None of this will be any comfort to the shareholders and also to the thousands of Rock employees who will lose their job. Robert Peston is brilliant on this issue - here is his latest blog which lays bare the blundering at the FSA and the shocking incompetence of their senior management.

Unit 1 Micro: Revision on Maximum Rents in Housing [1 Apr 2012]
Unit 1 Micro: Government launches New Buy Loan Guarantee Scheme [12 Mar 2012]
Unit 3 Micro: The Economics of Solar Subsidies [18 Jan 2012]
Unit 1 Micro: Prezi on the Economics of Negative Externalities [2 Jan 2012]
Unit 3 Micro: Impulses to Change Management Models [5 Nov 2011]
Unit 1 Micro: Is the Sun Dipping on Solar Subsidies? [27 Oct 2011]
Alcohol. Discuss! [18 Oct 2011]
Fat tax: Denmark [5 Oct 2011]
No more lighting up in Central Park? [25 May 2011]
A2 Micro: Ownership and Control in Modern Businesses [18 May 2011]
Unit 3 Micro: Diseconomies of Scale [18 May 2011]
Electric car charging points ‘shortfall’ [11 May 2011]
AS Micro: Government Failure in Wind Farms [4 May 2011]
AS Micro: Revision on Government Failure [1 May 2011]
Management lessons from the War in Iraq [30 Apr 2011]
Fraud hits EU carbon emissions trading [20 Feb 2011]
Never Mind Plan B - Plan V needed for the UK Economy! [17 Feb 2011]
The rise of the consumer regulator [15 Feb 2011]
Economics Q&A: Should the CAP be scrapped? [14 Feb 2011]
Economics at the Movies - Bank Run Scene from A Wonderful Life [30 Oct 2010]
Running out of Monet [1 Oct 2010]
Scotland nudges towards minimum alcohol price [3 Sep 2010]
Where good ideas come from [12 Aug 2010]
Government failure - extereme version! [28 May 2010]
Two examples of government failure [20 May 2010]
AS Economics Revision - Government Failure [18 May 2010]
AS / A2 Revision - Where Next for the UK Economy? [2 May 2010]
RES Essay Competition: Preventing Housing Bubbles [12 Apr 2010]
Spare swine flu vaccine - government failure or good planning? [8 Apr 2010]
Regulatory Capture [22 Mar 2010]
Free health care and government failure [21 Mar 2010]
Revision Presentation - EU & Carbon Emissions Trading [22 Feb 2010]
Labour Peer attacks free care for the elderly [3 Feb 2010]
Light Bulbs - Switching on to Government Failure [2 Jan 2010]
Nationalisation - Teacher Presentation [17 Nov 2009]
Sub-prime carbon - government failure? [5 Nov 2009]
How to start the next Google or Facebook [28 Sep 2009]
Government legislation week [1 Sep 2009]
What happens when the hose pipe is turned off? [23 Aug 2009]
Government Failure: Thai Rice Buffer Stock [14 Jul 2009]
Bank runs and infectious diseases [7 Jun 2009]
Europe Revision: Farm Reform [4 Jun 2009]
Q&A: What is the productivity gap? [1 Jun 2009]
Owners v Managers and the Principle Agent Problem [24 May 2009]
Unit 1 Micro: Short Note on Government Intervention [22 May 2009]
Chocolate tax - they wouldn’t, would they? [13 Mar 2009]
Managerial casualties and frictional unemployment [15 Jan 2009]
A new management paradigm - conserve cash [11 Jan 2009]
Luke Johnson on ownership and control [17 Oct 2008]
Hedge trimming [15 Oct 2008]
Smart Guys and the Principal Agent Problem [7 Oct 2008]
Financial collapse and the principal agent problem [29 Sep 2008]
FSA stamps on short-selling [18 Sep 2008]
Rock fall was symptom of wider malaise [13 Sep 2008]
Cycling on a roll - competitive advantage in action [21 Aug 2008]
Recession primer [13 Jul 2008]
Oxbridge E&M - Management Blogs [24 Jun 2008]
Canny pricing in a slowdown [16 May 2008]
Sub prime risks for the UK [19 Apr 2008]
Revision: Stakeholders [19 Apr 2008]
Tim Harford takes a dig at green taxes [31 Mar 2008]
Revision: Ownership and Control [30 Mar 2008]
Jackoby on Government Failure [9 Mar 2008]
The role of shareholders [9 Mar 2008]
Sunset for the Rock [17 Feb 2008]
How the Banks Bet Your Money [15 Feb 2008]
Unintended consequences of the smoking ban [9 Feb 2008]

ECONOMICS TEACHER RESOURCE NEWSLETTER

Join over 6,000 other Economics Teachers in the UK and around the world who receive the tutor2u regular Economics Resource Email Newsletter. Get special offers, first news of latest resources, teaching ideas, conferences and workshops + loads of great ideas for teaching economics from our blog authors.