RBS bosses cleared of fraud
Thursday 02 December 2010
The City watchdog today ruled out action against former bosses at Royal Bank of Scotland after finding no evidence of fraud or dishonest activity in the lead-up to the financial crisis.
The Financial Services Authority (FSA) cleared the firm and individuals, including former chief executive Sir Fred Goodwin, but warned that their competence would be taken into account in any future applications made by them to work at FSA-regulated firms.
In its investigation into the bailed-out bank, the FSA said RBS made a series of bad decisions in the years immediately before the financial crisis, most significantly the acquisition of Dutch bank ABN AMRO and the decision to aggressively expand its investment banking business.
But it added: "The review concluded that these bad decisions were not the result of a lack of integrity by any individual and we did not identify any instances of fraud or dishonest activity by RBS senior individuals or a failure of governance on the part of the board."
It said the findings of its investigation did not warrant taking any enforcement action, either against the firm or against individuals.
"However, the competence of RBS individuals can, and will, be taken into account in any future applications made by them to work at FSA regulated firms," it said.
The FSA launched its investigation into RBS in May last year after it became one of the UK banks to require partial taxpayer bail-out support. The review, carried out with help from accountancy firm PwC, considered if regulatory rules had been broken and what, if any, action was appropriate.
"The review was necessarily extensive and looked specifically at the conduct of senior individuals at the bank, the acquisition of ABN AMRO in 2007 and the 2008 capital raisings," the watchdog said.
The FSA's supervisory investigations into other banks that failed during the crisis are continuing.
- 3 The enemy within: People who hear voices in their heads are being encouraged to talk back
- 4 Phil Neville backtracks on Tomas Rosicky 'I'd smash him' comments from Match of the Day 2
- 5 British grandmother Lindsay Sandiford faces execution by firing squad in Indonesia
Paris attacks: Do not call Charlie Hebdo killers 'terrorists', BBC says
UK weather: Snow to fall in the coming week with sub-zero temperatures to last until early February
Asteroid narrowly scrapes past Earth: how to watch the closest space rock for decades as it flies by
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Prince Philip set to be knighted by Australia: Celebrate by reading his greatest gaffes
Nigel Farage: NHS might have to be replaced by private health insurance
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
French court convicts three over homophobic tweets, in case hailed as a 'significant victory' by LGBT rights campaigners
Greece elections: Syriza and EU on collision course after election win for left-wing party
British Muslim school children suffering a backlash of abuse following Paris attacks
George Galloway condemns 'racist, Islamophobic, hypocritical rag' Charlie Hebdo at freedom of speech rally
iJobs Money & Business
£30000 - £32000 per annum + benefits : Ashdown Group: A highly successful, int...
£18000 - £20000 per annum: Recruitment Genius: This rapidly expanding business...
£25 - 28k + Bonus: Guru Careers: An In-house / Internal Recruiter is needed to...
Negotiable: Recruitment Genius: A Tax Assistant is required to join a leading ...