The UK Financial Services Authority (FSA) has told the Treasury Select Committee of MP's that it expected the troubled mortgage lender, Northern Rock, to release a trading update this month before the end of its financial year.

Hector Sants, chief executive of the FSA, told the committee that he expected, it would be a pre-close statement, and then a (full) statement after the end of the year, reports Reuters.

Sants said that Northern Rock would be required to release an update for the market in order to fulfil its listing conditions.

Also giving evidence to the committee was the Chairman of the FSA, Callum McCarthy. The two men had been called up to give evidence in the committee's inquiry into financial stability.

Northern Rock was traditionally one of the first banks to provide market updates. The Rock said it expected to give an update in early December, but would not comment on today's comments.

Northern Rock was the first British bank to experience a run in 140 years after the credit crunch in September. It now owes around £25 billion to the Bank of England. A number of people have put in bids to takeover the bank, the preferred bidder is currently a consortium led by Sir Richard Branson's Virgin Group.

The FSA has been criticised for its role in the Northern Rock saga. According to Reuters McCarthy and Sants said that a discussion paper on the regulation of liquidity would be coming out this month. In addition to this an examination of the FSA's role in the Northern Rock crisis will be released next spring.

At 4:29pm on Tuesday Northern Rocks shares had dropped 5.02% to 104p.

United kingdom