Margaret Hodge, chair of the public accounts committee, said the sale of the bank was handled well but still led to a loss for taxpayers of nearly half a billion pounds.
Mrs Hodge said:
– Margaret Hodge
The rescue of Northern Rock is expected to cost the taxpayer some £2 billion.
The Treasury was unable to respond promptly when the banking crisis hit because it lacked the right skills and understanding.
It was slow to nationalise the bank and that made a loss difficult to avoid.
The Treasury had spent five months trying to find a private sector buyer before giving up.
After nationalisation, it then failed to effectively challenge the optimistic business plan put forward by the bank's management to split the bank.