The FSA could release a summary of their investigation into the failure of Royal Bank of Scotland and their supervision of the bank by March next year.
Responding to a letter from Treasury select committee chairman Andrew Tyrie, FSA chairman Lord Turner says the regulator would like to produce a report and is calling on the Government and the TSC to support requests to RBS for permission to use information gathered during the investigation to produce the report.
In his letter to Tyrie he writes: “We do not believe it would be appropriate to publish this in full, but now propose that we ask RBS whether it is willing to give its permission for the FSA to use the information gathered as a key input into the development of a report. It would be useful if the TSC and Government could express support for this course of action.”
Turner says he does not expect a “blow-by-blow account” but a clear description of any key failings, whether related to FSA supervisory processes or decisions made by the board and executives at the bank.
It comes after Tyrie wrote to Turner asking for a summary containing as much information as possible to be produced with a view to possible future publishing in the public interest.
Turner writes: “There is a legitimate public interest in simply knowing the story of what occurred and why taxpayer rescue was required.”
He calls on Government to consider introducing legislation to enable the Prudential Regulation Authority to publish full analysis of the causes of any bank failure or rescue, drawing openly on supervisory investigation material which would normally be subject to confidentiality constraints.