From the Independent:
The Financial Services Authority has gone into debt for the first time and has been told by directors to review its cash flow. The regulator has drawn on a £100m credit agreement with Lloyds Banking Group and has concluded a further borrowing facility of £100m with HSBC.Full story HERE.
The FSA spent £347m in the past year, but raised only £324m from fees and other revenues. Although the first facility was agreed with Lloyds before the credit crunch, it remained unused until this year. However, the regulator has already had to sign a further agreement to finance its expected deficit for the current year.