This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Find out more here.

FSA board not culpable over RBS, says Walker

  • Print
  • Comments (36)

The FSA board was not culpable in failing to spot the mounting problems before the failure of the Royal Bank of Scotland, according to one of the people put in charge of preparing a report into the failure of the bank.

Although Sir David Walker criticised the fact the bank’s and the FSA’s board did not know RBS’s capital position months before it collapsed, he told the Treasury select committee this morning that the FSA board was not culpable.

He said that just one of 61 issues brought to the FSA’s board in 2006 and 2007 was related to banking supervision. The rest were to do with Treating Customers Fairly, Equitable Life, pensions misselling and other conduct issues.

He said: “Given the pressure to focus on conduct issues like Treating Customers Fairly I think it is quite hard to fault the board.”

He told the MPs that the board was the “victim of the intellectual environment” that had emerged among regulators and economists which suggested banks had dealt with risk through insurance swaps and that markets are stabilising and efficient.

He said: “The international regulatory environment was a huge blight on the whole thing. I was part of it myself and it proved to be wholly wrong.”

  • Print
  • Comments (36)

Daily Email Updates
If you enjoyed this article, sign up to receive the latest news and analysis from Money Marketing.

Money Marketing Awards 2015
Put your firm forward as the leading practitioner in your field. Adviser and Advertising categories are open to entries - Enter Now.

Readers' comments (36)

  • Of course the FSA is culpable. It was their job to stop this happening and they failed.

    It is shameful to see this type of weaselling around. The truth will come out and, like with the MP's expenses, the more that those in power seek to stop it the more damaging it will be when it is finally public.

    The FSA is a disgrace.

    Unsuitable or offensive? Report this comment

  • And yet the FSA expects IFA' to know the risks of counter parties failing????

    And who decided that TCF was more important than market stability?

    Unsuitable or offensive? Report this comment

  • Summed up with "... I was part of it myself". So put another way, there is no way I am going to support the pinnig of blame on anyone as perhaps the finger could be pointed at me by another 'enquiry'.

    Great club, but glad I am not in it - I want my father to be proud of me!!

    Unsuitable or offensive? Report this comment

  • In the olden days it used to be that big, important, high paying jobs came with huge responsibility.

    If you fouled up you did the honourable thing and resigned.

    The FSA board fouls up, denies it and awards themselves a big bonus.

    I cannot express (in a way that MM will publish) the utter sickening contempt I have for these people.

    Unsuitable or offensive? Report this comment

  • What else could we expect from Sir David - he is part of the old boys Banking network! Perhaps though he meant 'the board were victims of being intellectually challenged' ? Why bother pestering the Banks with rules, regulations & checks - they only had the ability to bring the country to its knees & did that very well.

    Unsuitable or offensive? Report this comment

  • Us regulators are far too busy working out which Bank is going to give us a job to regulate!!

    It would be funny if it wasnt so serious

    Unsuitable or offensive? Report this comment

  • So are they responsible for Keydata, Arch Cru, Northern Rock, Halifax, Lloyds TSB, Dunfermline Building Society and all the numerous other failures that have taken place on their watch.

    These people are Teflon coated.

    PS. Where oh where is Julian Stevens - is he on holiday today?

    Unsuitable or offensive? Report this comment

  • I have never heard such aload of rubbish in my life.If they are not culpable who are? It seems if they get it wrong they are victims of "the intellectural environment" whatever that is, but if others get it wrong KeyData Cru etc then they are down on the IFA community like a ton of bricks. God I wish I was 10 years older and could get outof this godforsaken industry!!!

    Unsuitable or offensive? Report this comment

  • Am I reading this right ?

    He said: “Given the pressure to focus on conduct issues like Treating Customers Fairly I think it is quite hard to fault the board.”

    Way to go FSA get you prorities right !!!

    Lets give all our attention to the red herring of TCF, lets not concern ourselfs with the collapse of the financial system of this country.

    Now lets get back to the real issues wheres that office junior with the chocy bics to dunk in my tea !!!

    Now before we wrap up this board meeting any suggestions for the XMAS do ?

    Unsuitable or offensive? Report this comment

  • At the very least, Sants, Turner and Nichol should resign.

    They are incompetent failures, and their continued presence at Canary Wharf is a disgrace

    Unsuitable or offensive? Report this comment

View results 10 per page | 20 per page | 50 per page

Have your sayEdit my profile/screen name

You must sign in to make a comment

Fund Data

Editor's Pick


Are you prepared to process insistent client business?

Job of the week

Latest jobs

View all jobs

Most recent comments

View more comments