What else have we yet to learn?

The Wall Street Journal, and here Iain Martin (blog 4.12.09), noticed in a recent National Audit Office report on bank bail-out some very interesting words.

The report announced that "The authorities had been aware since 2005 that the existing legislative framework would not be sufficient in a crisis. Following further work in 2006 and 2007, and reflecting lessons from Northern Rock, they decided that a special resolution regime should be developed. The Banking (Special Provisions) Act become law in February 2008 and gave the Treasury power to take a bank or building Society into temporary public ownership, or transfer all, or part of its business to another owner."

So after 8 years the famous Brownian re-organisation of banking supervision of 1997 was known to be inadequate.

This was put right by a law of February 2008, just in time for the Treasury and FSA to give RBS a clean bill of health in the autumn of 2008, weeks before the true horrendous state of RBS became apparent.

So it's back to the drawing board yet again? With the EU, and French Commissioner, taking a hand as well?