FSA board not culpable over RBS, says Walker
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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.”
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Readers' comments (36)
Chippy Minton | 24 Jan 2012 2:09 pm
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.
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Anonymous | 24 Jan 2012 2:09 pm
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?
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GregB | 24 Jan 2012 2:29 pm
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!!
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Tricia Yates | 24 Jan 2012 2:30 pm
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.
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David | 24 Jan 2012 2:31 pm
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.
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Anonymous | 24 Jan 2012 2:32 pm
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
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Chippy Minton | 24 Jan 2012 2:34 pm
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?
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Peter | 24 Jan 2012 2:37 pm
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!!!
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DH | 24 Jan 2012 2:37 pm
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 ?
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Paul Nash | 24 Jan 2012 2:39 pm
At the very least, Sants, Turner and Nichol should resign.
They are incompetent failures, and their continued presence at Canary Wharf is a disgrace
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