Today's Mail on Sunday reports:
Financial Services Authority chairman Sir Callum McCarthy telephoned Lib Dem deputy leader Vince Cable in September and accused him of "scaremongering."
He told Mr Cable Northern Rock was not caught up in the sub-prime mortgage fiasco in the US.
Hours later the bank admitted it had been hit by the cheap mortgage collapse there.
And it is now clear Mr Cable was right to argue the bank had offered too many cheap loans to people who could not repay them.