Financial Services Authority wont publish RBS review’s content but claims RBS collapse was down to bad decisions only. THE SPECTACULAR COLLAPSE of the Royal Bank of Scotland under the leadership of Sir Fred Goodwin, dubbed by the media as the ‘World’s Worst Banker’ was simply down to bad business decisions, rather than corruption or any lack of integrity, so says the UK’s financial regulator, the Financial Services Authority (FSA) in a timely release today while most of the county’s focus remains on winter storms, Russia winning the competition to host the 2018 World Cup (удача!), and yet more expected headlines from Wikileaks on international & domestic political double dealing.
After completing an investigation which began in May 2009, the Financial Services Authority released a statement today after completing its supervisory investigation which began in May 2009. The FSA said RBS had made "a series of bad decisions" and the bank’s failure which led to the massive multi billion pound UK taxpayer bailout, seeing the RBS 84% owned by the Government, was “not the result of any lack of integrity by any individual and we did not identify any instances of fraud or dishonest activity by senior individuals or a failure of governance on part of the board".
Sir Fred Goodwin, off the hook, still working and still has a title, unlike many now being made redundant because of the UK banking collapse.The FSA said it would be taking no enforcement action as a result of the investigation, either against the firm or against individuals, so all those who were instrumental in the downfall of the UK’s largest financial institution, and are responsible for the biggest public service cuts ever in this country, along with throwing millions of people’s lives into financial turmoil, get away with it once again. Is this justice ? I think not. However it is consistent with regulation in the UK, that is, in the world of non-existent regulation.
The FSA’s statement in full :
FSA closes supervisory investigation of RBS
In May 2009 the Financial Services Authority (FSA) launched a supervisory investigation into Royal Bank of Scotland Group (RBS), as one of the UK banks that required partial taxpayer bailout support. This work 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 FSA conducted the review with assistance from PWC.
The FSA has now completed this supervisory investigation. The review confirmed that RBS made a series of bad decisions in the years immediately before the financial crisis, most significantly the acquisition of ABN AMRO and the decision to aggressively expand its investment banking business. However, 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.
The issues we investigated do not warrant us 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.
The FSA’s supervisory investigations into other banks that 'failed' during the crisis are ongoing. If they lead to enforcement action being taken then it would be usual for the FSA to make these outcomes public if such actions against individuals or institutions are successful.
The FSA cannot publish the content of the RBS review as information gathered from the bank during the course of the review remains confidential under the Financial Services and Markets Act 2000 (FSMA).
Rob MacGregor for the UNITE union released a statement condemning the FSA’s decision not to prosecute the RBS executives and condemned the FSA as being unable to hold the banking sector to account.
Rob MacGregor, Unite national officer, said: “Once again the Financial Services Authority has demonstrated its weakness and inability to hold the sector to account. The report’s conclusions are an outrage. It is unacceptable to suggest that the behaviour of the management in this iconic UK bank did not ‘lack integrity’ when they brought RBS to its knees, resulting in thousands of staff losing their livelihoods.
“By failing to bring any formal charges against the RBS executives the FSA has allowed some of the biggest villains of the financial crisis to go on enjoying their millionaire lifestyles whilst taxpayers experience cuts and staff face an insecure future.”
We can remind ourselves just what happened to the Royal Bank of Scotland at the hands of Sir Fred Goodwin, who still retains his knighthood and a job, unlike many victims of the public services cuts, including the UK’s armed forces and even the carrier HMS Ark Royal, now sunk twice it seems, the first time by a U-Boat of the Nazi German navy and now sunk again or scrapped as a result of the financial harm inflicted on the country by bankers who are off the hook once again.
Collapse of the Royal Bank of Scotland (Click images to watch video)
The Herald newspaper reported that during the Treasury Select Committee’s evidence sessions, “The four ex-chiefs of Royal Bank of Scotland (RBS) and HBOS admitted to having no formal banking qualifications between them in today's dramatic grilling by MPs.
“Members of the Treasury Select Committee heard how not one of the witnesses - who presided over two of Britain's biggest and worst hit banks - had technical banking training. The bosses - including former RBS chief executive Sir Fred Goodwin - were forced to defend themselves against tough questions over their suitability to lead the banks, which had to be bailed out with billions of pounds of taxpayers' cash.”
“Sir Fred denied he lacked experience, saying he had a degree in law and was a qualified chartered accountant, while also having worked as chief executive of the Clydesdale Bank and Yorkshire Bank before joining RBS. Sir Tom McKillop, previously chairman of now part-nationalised RBS, said he was "certainly numerate", although he conceded he had not studied banking specifically.”
Disgusting. These people have made fools of our country, our financial system, even our way of life. There are no words at all really to describe what they have done, and the suffering their actions are causing us – but its all ok because Sir Fred Goodwin had an LLB, and since the FSA said it was all just down to a few bad decisions, that's fine. Right ?
A Chief Executive with no banking qualifications appointed by a Board and this amounts to no failure of governance?
ReplyDeleteNo surprise to learn then that Hector Sants, head of the FSA, is a former city *anker himself.
Its a good thing the ConDems are scrapping this FSA for all the bloody use it is.
ReplyDeleteAs you say Peter this is a DISGUSTING decision although not surprising.
One of Douglas Mill's pals off the hook again.No surprise there!
ReplyDeleteProbably they wanted to avoid prosecuting him as I imagine he has lots of dirt on just about everyone in politics,banks and the FSA.
ReplyDeleteAlso how could we expect a successful prosecution with such a corrupt justice system as we have in this country?
He'd be let off just the same as how the FSA have framed their statements.
Whitewash again!
If Fred was a nuclear submarine captain who had ruined his vessel and his crew he would have been Court Marshalled.
ReplyDeleteThe self regulators are as slippy as Conger eels and a lot more dangerous. Well Dougie Mill will be as happy as a pig in S***e.
Sir Fred Goodwin, off the hook, still working and still has a title, unlike many now being made redundant because of the UK banking collapse.
ReplyDeleteThis lot always seem to land on their feet. Pity for his bank workers who like the public pay the price for their incompetent bosses.
Yes Peter the right degree always protects the holder. It is never regulation in Scotland only exoneration.
ReplyDeleteGood clips although clearly the FSA dont give a sh*t about anything except themselves.
ReplyDeleteAs the other comment says its good they are going to be scrapped.
So a series of bad decisions with absolutely no wrongdoing at all set the entire f*cking country back 10 or 20 years ?
ReplyDeleteCRAP
I think we need to prosecute the FSA for protecting the public.
These people are making a mockery of Justice. In case the FSA do not understand the word Justice = fairness & balance.
ReplyDeleteClearly like his sidekick Douglas Mill he has friends in the right places. Get an LLB and sink the bank you run and your LLB chums will clear you of any demeanours.
They do not give a F**k about the bank staff or the public, so long as they keep their incomes.
Yet another investigation tailored to suit the needs of the rich and powerful elite.
ReplyDeleteDont worry Peter they wont take his title away because if they did they'd have to admit they were wrong giving it to him in the first place and well if you take a look at the ex-convicts & criminals already in the House of Lords another title to someone who broke the banks doesn't make much difference does it.
This is the reality, MP's expenses, I doubt they will be found guilty, lawyers, doctors, accountants, bankers rarely prosecuted for their transgressions. If I were a young man I would leave Scotland, the county is wonderful but there is a sector of society who are always squeaky clean no matter what they do. Clearly it has evolved this way so that the powerful can protect each other. It is not a justice system for these people, they are above the law. Different rules for different people.
ReplyDeleteWhat is so great about having an LLB?
ReplyDeleteIs it impossible for a holder of an LLB to commit a crime?
LLBs have been used on a number of occasions in connection with crimes - just ask convicted pedo Julian Danskin or the other one Ian Donnelly
Incredible really and I think your post is excellent in bringing out the guilty.
ReplyDeleteOf course everyone is too busy calling Russia corrupt over the Wikileaks stuff yet we wont even prosecute the very people who bankrupted the country which has to be the very definition of corruption itself.
Shocking decision by the FSA - they should be charged for not charging the bankers!
ReplyDeletejust like crooked lawyers the bankers are let off again
ReplyDeleteWe can remind ourselves just what happened to the Royal Bank of Scotland at the hands of Sir Fred Goodwin, who still retains his knighthood and a job, unlike many victims of the public services cuts, including the UK’s armed forces and even the carrier HMS Ark Royal, now sunk twice it seems, the first time by a U-Boat of the Nazi German navy and now sunk again or scrapped as a result of the financial harm inflicted on the country by bankers who are off the hook once again.
ReplyDeleteThey should send Ark Royal on one last mission to sink the f'ing lawyers and bankers!
She'd go out in style!
I hope someone sends that report the FSA says they wont publish to WIKILEAKS !
ReplyDeleteCome on there must be someone in that stinking rotten FSA or PWC who can let us see what really happened!
The Political theorist Mosca had a theory about the tyranny of the powerful. While Sir Fred, the FSA, Law Society and Scottish Legal Complaints Commission are not elected by the public, it is clear that an organised minority can create havoc for the majority with impunity.
ReplyDeleteThen the minority have friends in the legislature, and the politicians protect the crooks. It is the same in the United States, Bush & Congress securing the bank bailout when the same bankers were selling mortgages to people knowing those people would have their homes repossessed. A member of Congress addressed the American people told them to stay in their homes. Bush talked about the enemies of freedom. the constitution is meant to protect American citizens from internal & external enemies. See Michael Moore's Capitalism a love story.
Our MSP's are traitors to the people of Scotland, putting self interest before the common good especially with regard to lawyers.
The Political theorist Mosca had a theory about the tyranny of the powerful. While Sir Fred, the FSA, Law Society and Scottish Legal Complaints Commission are not elected by the public, it is clear that an organised minority can create havoc for the majority with impunity.
ReplyDeleteThen the minority have friends in the legislature, and the politicians protect the crooks. It is the same in the United States, Bush & Congress securing the bank bailout when the same bankers were selling mortgages to people knowing those people would have their homes repossessed. A member of Congress addressed the American people told them to stay in their homes. Bush talked about the enemies of freedom. the constitution is meant to protect American citizens from internal & external enemies. See Michael Moore's Capitalism a love story.
Our MSP's are traitors to the people of Scotland, putting self interest before the common good especially with regard to lawyers.
The FSA should be prosecuted too for doing nothing!
ReplyDeleteHow can a bank collapse and there's no blame to anyone?
Total snow job as usual
I hope those *ankers all get frozen or burst pipes this winter!
ReplyDeleteWhere is the usually outraged Vince Cable when we need him ?
ReplyDeleteOh yes thats right, he's in a coalition government now so as well as all the LibDem values (harhar) he wont be able to criticise the FSA now either.
Now that Goodwin has been cleared they can stick him on the slcc to save crooked lawyers!
ReplyDeleteDisgusting. These people have made fools of our country, our financial system, even our way of life. There are no words at all really to describe what they have done, and the suffering their actions are causing us – but its all ok because Sir Fred Goodwin had an LLB, and since the FSA said it was all just down to a few bad decisions, that's fine. Right ?
ReplyDeleteNo!
Its not bloody well fine at all !
This is one of the reasons this country has a bigger Police Force than an Army to keep us rising up against crooked bankers who have probably set us back decades.
Scum by any other name!
Took them nearly 2 years to do their investigation which is about the standard time so we all forget about it and then when the results are announced there's always other big news about as you said.
ReplyDeleteThe sooner the FSA is axed the better and same goes for all the wasters on bonuses and their crooked lawyer chums!
That might be the opinion of the cover up FSA but many people including myself believe otherwise.They were guilty and the bank is ruined probably the whole bank sector for good
ReplyDeletehttp://latestnews.virginmedia.com/news/uk/2010/12/03/ex_mp_chaytor_admits_expenses_fraud
ReplyDelete3 December 2010 12:52pm
A former Labour MP is facing jail after becoming the first politician to have a conviction for making false parliamentary expenses claims.
David Chaytor pleaded guilty at the Old Bailey to three charges of false accounting amounting to more than £18,000.
One of the charges related to allowance claims for rent he paid to a woman for a house in Castle Street, Bury, Lancashire. But the woman was his mother, who was in a home and suffering from Alzheimer's. She was never paid the money and has subsequently died.
Chaytor, 61, of Lumbutts, Todmorden, West Yorkshire, had been MP for Bury North since 1997, when the MPs' expenses scandal broke last year. He was suspended from the Parliamentary Labour Party. He was remanded on bail to be sentenced at Southwark Crown Court on January 7.
===================================
I was wrong there is one conviction, pity Mill and Fred the Shred are not going to prison too.
Anonymous said...
ReplyDeleteWhere is the usually outraged Vince Cable when we need him ?
Oh yes thats right, he's in a coalition government now so as well as all the LibDem values (harhar) he wont be able to criticise the FSA now either.
3 December 2010 12:50
Vince Cable ? I wont be voting LibDem ever again after watching all their policy u-turns including his and yes I did notice he hasnt said anything about the FSA and RBS and as someone else already said they have the cheek to call Russia a Mafia State ! What the hell are we then ?
The FSA said it was all just down to a few bad decisions, I think they mean disasterous decisions.
ReplyDeleteWelcome to Scotland where the powerful are never culpable.
Clearly Fred has nothing to worry about, the FSA are as useful as a chocolate fireguard.
ReplyDeleteThe FSA is useless, as good a regulator as Fred is a banker.
ReplyDeleteSome setup Peter when no heads roll.
Oh yes the FSA are going to be scrapped but who is staying on to head the new lot - yes, you've guessed it, Hector Sants.
ReplyDeleteHe can celebrate this weekend while the rest of us rot over his 'bad decisions'
ReplyDeleteThe Liberal Democrats would do anything for power as they have shown. I wonder if Clegg is one of Thatcher's children?
ReplyDeleteSir Fred Goodwin, off the hook, still working and still has a title,
ReplyDeletewelcome to Scotland, a country where the few are rewarded for taking us to the abyss of economic disaster, legal injustice, and the Powers responsible for regulation simply exonerate. Collective bad decisions, mean no individual can be blamed, The FSA are fooling no one. Fredie Kruger could not have curved up the economy the way Fred the Shred has. A disgrace no heads will roll.
People at the top only comprehend life from the top. I am a surveyor Fred and if I messed up seriously on one contract l would be out the door. The contracts I run are peanuts in comparison with your banking disaster, and you are exonerated.
ReplyDeleteClearly you have friends in the right places, just like Mr MacAskill and your friend Mr Mill's Scottish Legal Complaints Commission, and Law Society of Scotland.
The FSA are not fit for purpose.
Some people may disagree with me Mr cherbi but I think the human race are shooting themselves in the foot.
ReplyDeleteToo much conflict lack of respect for others. Bring money and material interests into it and trouble rears its ugly head. If your family were treated well by lawyers, I would not be leaving this comment now, and this is not a criticsm.
Short sighted greed, and the failure to foresee people dissenting is the reason lawyers are being challenged now on self regulation. If people were the on the recieving end of their own actions our world would be a better place for it.
Your friend has been cleared of any wrongdoing Mr Mill, just like the lawyers you protected at the Law Society. Does that make things better Mr Mill? It you think so you are a fool indeed.
lawyers are a warped breed, and The Law Society of Scotland and MSP's are the reason they will not change their ways.
ReplyDeleteA car dealer phoned me yesterday and the manager said "you bought a car from us two years ago". I quickly explained I had received shoddy treatment and I would not buy a bolt from them now because I have consumer choice. I thought pity there is no consumer choice with lawyers, only lowlife reprobates hell bent on protecting each other and robbing clients in return for poor legal service.
God help anyone who has to deal with these corrupt ruthless evil people.