The Economist recently argued that the "light touch" of UK financial regulators had a role to play in the Northern Rock‘s failure to manage its risks and the subsequent run by depositors.

It also says dividing up market information and roles between the central bank and the Financial Services Authority is a structural flaw.

The Wall Street Journal looks at the difference between the US and UK supervisory systems and says that Northern Rock would not have been bailed out in the US.

This is interesting given Australia’s commitment to its 3 pillars of financial services regulation (Reserve Bank, APRA, ASIC).