The UK's Financial Services' Authority, which has spent much of the past year baring its teeth, is not happy. Last year it last year took the bold step of introducing tough new rules on bank liquidity in a bid to prevent a Northern Rock-style meltdown leaving banks high and dry. Now, it has sent a letter to regulated institutions effectively asking why they have failed to act.

The rules marked a radical departure from the prevailing creaky liquidity controls found inside the vast majority of investment banks, retail banks, and building societies, who were found during the crisis to have extremely limited visibility on their liquidity position.