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Cable slams RBS for blocking FSA report

Business Secretary Vince Cable has slammed Royal Bank of Scotland for setting up obstacles aimed at blocking the release of an FSA report into its collapse.

Yesterday it emerged the report which was originally expected in March has been delayed indefinitely because of legal wrangling between the bank’s lawyers and the regulator over its tone and content.

RBS lawyers say the report could expose them to litigation, especially in the United States, but Cable says a comprehensive report should be released quickly.

He says: “There is a clear public interest in a comprehensive report being delivered to Government as soon as possible. My department is speaking to the FSA about the delay and shares their frustration about the obstacles put in their way to prevent publication.”

However, in response to a request from Treasury select committee chairman Andrew Tyrie, FSA chairman Lord Turner said in December that the FSA could release only a “summary” of their investigation.

Prior to Tyrie’s intervention, the FSA had refused to publish details of its investigation in to the collapse of the bank which is now 84 per cent owned by the tax payer.

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Comments

There are 7 comments at the moment, we would love to hear your opinion too.

  1. So what exactly is the point of a report no one can see? Given that it cost the tax payer millions of pounds, are we to believe now that the only point of the report was to put money into the pocket of PwC? It certainly seems that way.

    And, given the FSA are now into their third year of an investigation into HBOS and specifically ‘HBOS Reading’, is the obfuscation into RBS an indication of what we can expect in the HBOS Report?

    If the results of FSA investigations and reports are purely to identify what the public cannot be told, then lets stop wasting money on this charade. Or better still, lets use the money to investigate the point and validity of the FSA reports. And can we also investigate how many people leave the FSA to take positions at the same banks they have previously been charged with investigating. Conflict of interest?

  2. You just could’nt make this up!
    What a Fiasco. Whats the point in producing a report if legal beagles can block it. So much for a regulator with teeth. They always bite the individual, but rarely the banks. Why?
    Let us all see the report and make up our own minds, or perhaps they dont think were grown up enough to handle the information.

  3. RBS have much to hide and powerful friends.

  4. Sandra Urquhart 4th May 2011 at 1:22 pm

    Absolutley pathetic!

  5. I’m not usually a supporter of Vince Cable but in this instance……….

    As has already been said here RBS are using their powerful friends. Why have an FSA if RBS can tell them what to do, silly me thats how it is all the time!

  6. Green Eyed Monster 4th May 2011 at 3:11 pm

    Well now Mr (FSA bod) if that report is released our job offer will be withdrawn. I do hope you understand.

    RBS

  7. Julian Stevens 9th May 2011 at 11:33 pm

    One is tempted to speculate that the aspects of the report with which RBS’s lawyers are unhappy are that it attempts to absolve the FSA of any responsibility and dump it all instead on the directors of RBS.

    And if, in response to a request from Treasury select committee chairman Andrew Tyrie, FSA chairman Lord Turner’s response has been that the FSA can release only a “summary” of its investigation, does this not make a mockery of Hector Sants’ claim that the FSA is accountable to Parliament? Surely, whilst the TSC is not above the law, it must have the power to see in its entirety a report of this nature, even if it is subject to legal dispute?

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