The Bank of England seemed to be unaware of the gravity of the situation just a month before the start of the global financial crisis, according to newly released documents.
Minutes from the Bank's governing body from 2007 to 2009 have been published.
They show the Bank did identify liquidity as an issue of 'central concern' in July 2007, but not something it needed to take action on.
New models were being worked on to detect risks to the financial system, but the minutes don't show an impending risk was suspected.
Danny Cox of stockbroker Hargreaves Lansdown says the documents are damning.
IN: "The Bank….
OUT: ...responsibility."
DUR: 26 seconds