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Fsa Never Discussed Rbs Failure With Board

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http://www.bbc.co.uk/news/business-13600060

The Financial Services Authority is only now arranging to interview all of Royal Bank of Scotland's non-executive directors from the era when the bank failed, some two years and eight months after the collapse and rescue of RBS.

There may well be widespread surprise, and criticism, that a number of members of the RBS board from the time of the crash - the biggest banking disaster in the history of the UK - have never been interviewed by the FSA.

This morning I have spoken to two RBS non-executives - both prominent in the business community - who have never had a conversation with the FSA about the collapse of RBS. And they tell me others too haven't been interviewed by the FSA.

Sources have confirmed to me that the FSA has recently approached all of the former non-execs, and dates have been arranged for interviews with them.

The purpose of these interviews is to elicit their views on why RBS collapsed and needed to be rescued with £46bn of investment from taxpayers and £37bn of emergency loans from the Bank of England.

"The first question we're being asked is why the bank failed", said a former non-executive.

I am also told that even the executives who have been interviewed by the FSA weren't originally asked for their views on the causes of the collapse. "I was never asked that question", said one former RBS executive.

This long delay to the gathering of information from those whose primary responsibility was to preserve the health of the bank is due to an important change in the nature of the investigation into RBS being carried out by the FSA.

A couple of the erstwhile non-executives also said to me that they regarded it as odd that the FSA has apparently interviewed RBS's controversial chief executive from that era, Sir Fred Goodwin, on only a single occasion.

"It doesn't really make sense" said a former non-executive. "You would have thought the FSA would have needed to see him on a number of occasions, in order to understand what happened".

Mr Cameron has spoken to the FSA on a number of occasions.

An FSA source told me that back in 2009 it wrote to all the non-executives asking them if they had anything they wished to communicate to the FSA about the governance of RBS. "A number of them told us through their lawyers that they had nothing to say", he said.

The FSA did not follow up these rejections of its invitations to supply information, at least not until very recently.

Dated 31/5 - Apols if alreadty discussed.

Simply astonishing.

The biggest failure in UK corporate history, huge transfer of taxpayer money, worst recession since the 30s, ongoing depression, "we're all in this together" public service cuts and not even the pathetic excuse of a regulator bothers to dicuss the reasons for RBS' failure with its own board.

Cameron needs to hold a public inquiry into RBS and the FSA. His failure to do so and the media's failure to hold him to account is astonishing.

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maybe all the slots at a suitable golf courses were booked up until now?

on a more serious note, I would rather the govt (both this one and the former Brown government) steadied the ship first before holding the autopsy, to be frank, I am not so bothered about the timing

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maybe all the slots at a suitable golf courses were booked up until now?

on a more serious note, I would rather the govt (both this one and the former Brown government) steadied the ship first before holding the autopsy, to be frank, I am not so bothered about the timing

by saving the debt heavy RBS, the government have done nothing to steady the ship.

Letting it go would have been hard for a day or two, people shocked, but billions of debt defaulted, billions saved in taxes, billions saved in QE not required.

Yet they send an officer out to interview a shoplifter.

Edited by Bloo Loo

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Why are the FSA playing any part in deciding if RBS did anything wrong?

They cannot be impartial because it would highlight a failure in their own regulation.

Full public enquiry please, including the part the FSA played in it all. The FSA are a large part of the problem, not a body that decide if anyone else did anything wrong.

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Why are the FSA playing any part in deciding if RBS did anything wrong?

They cannot be impartial because it would highlight a failure in their own regulation.

Full public enquiry please, including the part the FSA played in it all. The FSA are a large part of the problem, not a body that decide if anyone else did anything wrong.

I like the FSA, they have a superb state of the art gym complex even from the outside you could spend hours ogling nubile young secretaries butts as they pumped up and down in lycra on the running machines. Im sure it also has other positives aswell

Edited by georgia o'keeffe

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http://www.bbc.co.uk/news/business-13600060

Dated 31/5 - Apols if alreadty discussed.

Simply astonishing.

The biggest failure in UK corporate history, huge transfer of taxpayer money, worst recession since the 30s, ongoing depression, "we're all in this together" public service cuts and not even the pathetic excuse of a regulator bothers to dicuss the reasons for RBS' failure with its own board.

Cameron needs to hold a public inquiry into RBS and the FSA. His failure to do so and the media's failure to hold him to account is astonishing.

Perhaps they colluded before the crash ....... hence little need for meetings after?

unthinkable??..... what reasons would they have to do such a thing?

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I like the FSA, they have a superb state of the art gym complex even from the outside you could spend hours ogling nubile young secretaries butts as they pumped up and down in lycra on the running machines. Im sure it also has other positives aswell

They also do a good Christmas party:

Information obtained by Money Marketing through a Freedom of Information request, from recently audited figures, shows the regulator has spent a total of £1,259,624 on staff Christmas parties over the last six years. This includes the £228,462 cost for staff parties held over the festive period at the height of the financial crisis in 2008.

The amount spent breaks down as £140,569 in 2004, £246,189 in 2005, £265,171 in 2006, £271,419 in 2007, £228,462 in 2008 and £107,814 in 2009.

The FSA says it cannot disclose how much it spent on staff flights and accommodation to attend Christmas parties as calculating it would cost too much.

http://www.moneymarketing.co.uk/regulation/%C2%A3125m-cost-of-fsa-xmas-parties/1023368.article

The Serious Fraud Office also like the FSA because they have been rewarded so much for failure that they need their own wages to rise 50% to keep their best staff

http://www.housepricecrash.co.uk/forum/index.php?showtopic=164134

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5/5/2011

Adair Turner, chairman of the FSA, said,

“There is strong public interest in having a clear account of the causes of RBS’ failure. The FSA is committed to producing such an account. Producing a high quality account takes time, both because the causes of RBS’ failure were complex and multi-faceted and because of the need to respect due legal process and confidentiality constraints.

“I am confident however that the final report will be seen as an open, fair, and valuable contribution to public understanding. The appointment of the independent reviewers will provide public assurance of the report’s openness and contribute to its quality. I am very grateful to them for agreeing to take this role and to the TSC and its Chairman Andrew Tyrie for their constructive role in seeking to ensure an effective and valuable report.”

http://www.fsa.gov.uk/pages/Library/Communication/PR/2011/040.shtml

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I like the FSA, they have a superb state of the art gym complex even from the outside you could spend hours ogling nubile young secretaries butts as they pumped up and down in lycra on the running machines. Im sure it also has other positives aswell

Bear in mind they have to compete with banks with staff. We may have to pay our regulators a lot more so they can't be poached.

Surprised however that the FSA staff couldn't have used the excellent Reebok gym in Canary Wharf.

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