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FSA blocked RBS revolt against Goodwin, says Times

The FSA blocked an attempt by revolting shareholders to vote off former chief executive Sir Fred Goodwin from the board, according to the Times.

The newspaper says it has evidence to prove that the regulator vetoed calls for a board re-election in April 2008 to keep stability at the ailing bank.

“When we tried to hold individual directors to account last April, the FSA intervened to prevent it,” a major shareholder told the Times.

RBS board members are re-elected every three years, so Goodwin was not up for re-election until 2010. But the paper says investors urged chairman Sir Tom McKillop to change the rules and re-elect the board annually after RBS entered into a £12bn rights issue.

In his speech earlier this week at the National Association of Pension Funds Investment Conference, FSA director Hector Sants said: “It remains fundamental that we recognise that firms’ senior management carry primary responsibility for their actions and their resulting consequences. This responsibility is also shared with non-executives, shareholders and auditors.”

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