Walker to judge FSA's RBS report

Sir David walker has been asked to mediate in a dispute that has delayed the Financial Services Authority's long-awaited report into the failure of Royal Bank of Scotland.

The City grandee will arbitrate between the regulator, the Government and lawyers for RBS over what should be included in the potentially explosive report.

The FSA has also appointed an as-yet unnamed senior City lawyer to work with Sir David in judging the accuracy and tone of the report and could announce more details as soon as today.

The FSA agreed reluctantly in December to publish the report into the bailed-out bank after widespread outrage at its decision to keep it under wraps.