Northern Rock (the 100% state owned bank) announced a 24% increase in half year losses to £724M today.
Seemingly the number of bad loans tripled in six months. Maybe enticing people into borrowing 125% of a property's value wasn't such a good idea?
It reported that 3.92% of its mortgages are in arrears. The national average of mortgages in arrears is 2.39%.
Quite where the FSA was, and what it was doing, whilst the then board of Northern Rock were destroying value is anyone's guess.
Northern Rock remains a monument to the failure of the FSA and the tripartite regulatory system created by Brown.