More than £71bn has been wiped off the market value of British banking stocks in the 12 months since the start of Northern Rock's downfall.
Northern Rock has completed its redundancy talks with staff and confirmed 1,300 jobs have been cut.
Northern Rock has made a £585m loss in the first six months of 2008 following a sharp rise in arrears.
Northern Rock has announced 1,300 staff will lose their jobs as part of its restructuring programme.
Jon Pain, a former MD of Cheltenham & Gloucester and ex chairman of the Council of Mortgage Lenders, has been appointed as the FSA's managing director of retail markets.
Gary Hoffman, vice chairman of Barclays, has been appointed as chief executive of Northern Rock on a basic salary of £700,000.
Mervyn King has told MPs he would have liked the ability to trigger the special resolution regime to rescue the failing Northern Rock.
Chancellor Alistair Darling has outlined plans for a new banking bill which will see the Bank of England (BoE) given powers for UK's financial stability along with added controls to the FSA.
Northern Rock's speedy loan repayment could intensify the credit crunch, according to New Star economist Simon Ward.
The Treasury is searching for an independent valuer to assess any compensation due to Northern Rock's former shareholders.