Managers ‘to blame for RBS failure’
Managers ‘to blame for RBS failure’
Royal Bank of Scotland almost collapsed in 2008 because of poor decisions made by management, a new report has found.
The Financial Services Authority (FSA) laid the blame for the collapse on "underlying deficiencies in RBS management, governance and culture".
The City watchdog also accepted that its regulation of banks was "flawed" but said the shortcomings were not caused by negligence.
Instead, the deficiencies were due to a generally inadequate approach to regulating the financial system, FSA chairman Lord Turner said.
The failure of the bank cost taxpayers £45.5 billion and helped tip the UK into its worst economic crisis since the 1930s, yet no enforcement or disciplinary proceedings were brought against the bank or its managers.
Lord Turner said he understands the widespread anger that no one has been seriously punished for the damage caused by the failings at RBS.
He added that the Government may have to consider changing the law to make board members more liable for the consequences of their decisions.
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