Cameron blames Brown for economic failings

Conservative leader David Cameron has blamed the government for the Financial Services Authority's (FSA) "failings".

Speaking in prime minister's questions after the FSA published a report criticising its monitoring of Northern Rock, Mr Cameron said Mr Brown should be "frank" about the regulatory system's failings.

He suggested the Bank of England should be put in charge of "rescuing banks that fail" and told Labour backbenchers "they do not like to hear the extent of the failure of the system put in place by the prime minister".

"It is time that the prime minister and the chancellor realised that one of the real problems facing Britain is their economic mismanagement," he added.

"The prime minister and the chancellor have made several U-turns recently; why do they not make one more U-turn and make the Bank of England responsible?"