FSA' RBS management acted poorly
12/12/2011
Topic: Investments
The Financial Services Authority (FSA) said management and board members at the Royal Bank of Scotland (RBS) made “poor” decisions ahead of the resulting financial crisis, it a statement made today (December 12th).
Publishing its report into the failure of RBS, the regulator admitted it was too focused on conduct regulation at the time, while its prudential supervision of major banks was inadequate.
Investors lost a collective £26 billion after paying 50p per share, with the closing share price on December 9th hitting just 22p, Which? figures showed.
Which? Chief Executive Pater Vicary-Smith called on the Chancellor to ensure better measures are taken to prevent the entire system collapsing as a result of one major bank’s failings.
He said: “The FSA report is a damning document. It reveals the inherent flaws in a corporate culture that focuses on bonuses and short-term profits.
“The Chancellor must confirm he will take tough action to protect consumers when he publishes his response to the Independent Commission on banking next week.”
FSA Chairman Adair Turner admitted senior management at the bank would not be penalised because current rules are not strong enough to enforce sanctions.
Posted by Liam Tomlinson
Publishing its report into the failure of RBS, the regulator admitted it was too focused on conduct regulation at the time, while its prudential supervision of major banks was inadequate.
Investors lost a collective £26 billion after paying 50p per share, with the closing share price on December 9th hitting just 22p, Which? figures showed.
Which? Chief Executive Pater Vicary-Smith called on the Chancellor to ensure better measures are taken to prevent the entire system collapsing as a result of one major bank’s failings.
He said: “The FSA report is a damning document. It reveals the inherent flaws in a corporate culture that focuses on bonuses and short-term profits.
“The Chancellor must confirm he will take tough action to protect consumers when he publishes his response to the Independent Commission on banking next week.”
FSA Chairman Adair Turner admitted senior management at the bank would not be penalised because current rules are not strong enough to enforce sanctions.
Posted by Liam Tomlinson
© 2010 Adfero Ltd. All rights reserved. Any views and opinions expressed in news articles are not those of Prudential. News supplied by Adfero DirectNews
Read About Prudential's Investment plans
