Business Secretary Vince Cable says he is investigating whether any action can be taken against any Royal Bank of Scotland directors who were at the bank in the run up to its near collapse in 2008.
In a report published today, the FSA admitted it had a significant part to play in the near collapse of the bank. The report reveals the bank had a weak capital position, was too reliant on short-term wholesale funding and that senior management made some poor decisions in the run up to its bailout, specifically relating to the acquisition of ABN AMRO.
Following the publication of a previous report on RBS by PricewaterhouseCoopers, the Department for Business, Innovation and Skills investigated whether it should disqualify any of the bank’s directors.
Cable says he is now investigating whether he should take similar action against former RBS directors following the publication of the FSA’s report into the bank.
He says: “The report mentions that previous reports on RBS by PwC were disclosed to my officials earlier this year. This information was provided so they could take a view on whether there was sufficient evidence to suggest I should take action against any director by way of disqualification. Counsel advised them that it would not be appropriate to bring proceedings on the information contained in them.
“Now that I have received the FSA’s report, I am immediately instructing Counsel to provide further advice on what course of action is open to me.”
In the FSA’s report, the regulator said there is not sufficient evidence to bring enforcement action against any one member of RBS’s senior management team or board which has a reasonable chance of success in tribunal or court proceedings.