Peston, the man with the golden contacts book, started watching Northern Rock
back in 2003. He could see it was expanding too fast and riding for a fall. "One
day," he predicted, squirming to recall his hackneyed phrase, "this bank will
find itself between a rock and a hard place."
Gillian Shephard also spotted problems back in 2006 and warned Ministers. If both of these astute individuals could see that Northern Rock was heading for the rocks, why couldn't the combined talents of the thousands of civil servants employed by the Treasury, Bank of England and the Financial Services Authority? This should be investigated by the Treasury Select Committee. Who knew what, when?