RBS report: FSA’s analysis of banks was ‘deficient’
Posted By Admin on December 19, 2011
The UKs financial regulator will be highly critical of its own role in its report into the circumstances surrounding the collapse of the Royal Bank of Scotland, the BBC has learned.
Many aspects of the Financial Service Authoritys work were inadequate or deficient, Mondays report will say.
But the BBC understands the regulator will say that the ultimate failure of RBS in 2008 was a result of decisions made by the banks management.
The FSA has yet to officially comment.
The report says that the FSA did not understand the wider banking system before the crisis, it states: By 2007 the entire UK banking system was dependent on wholesale funding and therefore liquidity had become a huge issue and that the FSA failed to appreciate this.
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