Goodwin could face criminal charges after FSA verdict

Sir Fred Goodwin could face criminal charges after the FSA's report into the collapse of the Royal Bank of Scotland (RBS) suggested the bank's directors broke Britain's accountancy laws.

Lord Turner, the chairman of the FSA, said on Tuesday there was not "sufficient evidence" to punish any of the RBS directors under the regulator's rules.

But the FSA's report may have handed Vince Cable an unforeseen chance to press charges instead, according to The Daily Telegraph.

The Companies Act - different from the FSA's rule book and policed by the Department of Business (BIS) - says directors must be able to "disclose [their company's] financial position with reasonable accuracy at any time".

They must ensure an "adequate record is made and retained ... of any expected loss, liability or contingency material to the assessment of the current position."

The FSA's report, which has been handed to Cable, suggested RBS directors breached these rules.

Investigators found "RBS appeared uncertain of its capital position at critical times. This included after March 2008". They said standard information was hard to find.

RBS nearly collapsed in 2008 because of poor management, inadequate regulation and a flawed supervisory system, the FSA report published on Monday said.