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The Financial Services Authority's report into the collapse of Royal Bank of Scotland will not examine in any detail the role played by Sir Fred Goodwin and Sir Tom McKillop, its two most senior directors.
The Sunday Telegraph understands that the report, due to be published on 12 December, will not centre on the work of the two men - chief executive and chairman respectively at the time of the bank's downfall in October 2008 - nor decisions made by them in connection with the €71bn (£61bn) acquisition of ABN Amro.
A source with knowledge of the report indicated it will centre on the part played by Johnny Cameron, the head of RBS's investment banking arm at the time.
Cameron is the only member of RBS's senior management team to have been censured as a result of the bank's collapse that triggered a £45bn government rescue and which saw taxpayers end up with an 83% stake in the lender.
The report is also expected to look at the part played by the FSA as regulator and supervisor of the bank.
It is understood it will highlight that more analysis should have been carried out by the FSa into the associated risks with the ABN transaction, not least the difference between Barclays' original agreed takeover of ABN and the hostile takeover led by RBS on behalf of a consortium.
In terms of assessing why the bank failed, the report is expected in large part to blame the global financial crisis and the risks created by buying ABN at a time of greatly-reduced market liquidity.
The report is being published a year after the FSA closed its original investigation into the bank's collapse, which it signalled with a 12-line press release.
Following intense pressure, the FSA agreed to publish the document, with oversight by City grandees Sir David Walker and Bill Knight.
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| Comment | Fred the Shred to escape scrutiny in FSA RBS report |
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Fred Goodwin & FSA RBS Report
Nothing new about this. This will be just another white wash for all at the top of the FSA, Civil Service and Government. When completed it will be signed off and consigned to the archives. Meanwhile the banks carry on as if nothing had happened.
Posted by: John Smyth
Welcome to the world
Why is anyone surprised anymore at the total lack of anything resembling accoutability in senior management. There hasn't been any degree responsilty, remorse, or shame for a very long time. At the very top no one is ever to blame, and even on the rare occasions they get caught (Peter Mandleson for one) they either get a handsome pay off or get brought back into office after a token exile. The only way there will ever be proper punishment is if there is an effective regulator, unafraid to exercise its powers, and not the chocolate teapot at the FSA and shortly to be in charge at the new PRA.
Posted by: Cynical Realist
Cover UP
You really have to ask what is the point of regulation when a bank goes bust and is bailed out by the tax payer but the regulator protects the very people who ran the bank into the ground. What on earth is the point of this vastly expensive regulator?
Posted by: Michael Fallas
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What?.....
Happy to take massive bonuses but refuse to take any responsibility? Shameless excuses for human beings. Also, is there something even more sinister at work here? Some civil servant signs off MASSIVE pension for life to Sir Fred after it all blows up and now there is to be no investigation into his role in damning the whole country to poor investment returns over the coming ten years as economic growth struggles to become reasonable again and people refuse to trust banks. This country is run by sneaky, self serving individuals who treat the general public like uneducated fools. This lead is followed in all areas of civil service then, meaning professions like teaching will never be any good due to the type of person it attracts into top posts. I really do give up.
Posted by: Amazed