The FSA has closed its investigation into Royal Bank of Scotland, saying while the bank made “bad decisions” they were not the result of a lack of integrity.
The regulator says it did not identify instances of fraud or dishonest activity by RBS senior individuals or a failure of governance on the part of the board.
It launched a probe into RBS in May 2009 to examine the conduct of senior individuals, its acquisition of ABN Amro in 2008 and its capital raisings in 2008.
A statement this morning says: “The issues we investigated do not warrant us taking any enforcement action, either against the firm or against individuals. However, the competence of RBS individuals can, and will, be taken into account in any future applications made by them to work at FSA regulated firms.
“The FSA’s supervisory investigations into other banks that ‘failed’ during the crisis are ongoing. If they lead to enforcement action being taken then it would be usual for the FSA to make these outcomes public if such actions against individuals or institutions are successful.”
RBS was nationalised in October 2008 after it bought parts of ABN Amro just as the financial crisis erupted.