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FSA report into RBS to be “openly self critical”

Lord-Turner.jpg

Lord Turner says the FSA is convinced  it will produce “the most openly self critical report of any organisation” when it publishes its internal review into the collapse of Royal Bank of Scotland.

At the FSA annual public meeting today, Lord Turner referred to the FSA audit report into Northern Rock in April 2008 as the most “rigorously self critical I think, of any report produced by an organisation itself anywhere in the world after this financial crisis”.

Turner added: “We do not have a record of being easy on ourselves and from that respect we are completely different from most organisations across the world.”

Lord Turner added the regulation of RBS was woefully inefficient and that banks were allowed to run with “totally inadequate” levels of capital.

He said external reviewers would be given all the material they required to carry out the investigation into RBS’ failings but also claimed that the rules inherited were completely inadequate and that a “workable way forward” had been found.

The Treasury ordered a review of the FSA rules in December after the regulator said it was unable to publish a report into the collapse of RBS.

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Comments

There are 8 comments at the moment, we would love to hear your opinion too.

  1. Self flagellation?

  2. Another Pissed Off IFA 23rd June 2011 at 5:27 pm

    Note to self: Stop in at The Flying Pig on the way home.

  3. But not critical of the senior FSA management who took ‘performance bonuses’ throughout presumably.

  4. so we’ll be seeing the FSA imposing a swingeing great fine on themselves no doubt…

  5. Will anyone be sacked or disciplined?

    If not please spare us your crocodile tears!

    Am I the only person who sees similarities between the FSA and FIFA?

  6. It doesn’t really matter what the FSA says about itself because it’s soon to be replaced by the FCA and its responsibilities for regulating the banks hived off to the PRA, so no action will be taken. And there certainly won’t be any naming of names ~ Hector Sants made that abundantly clear in the face of being asked by the TSC repeatedly to do so back in March. It was all about “collective” or “institutional ” or “organisational” or “procedural” failures. But, apparently, no individuals were actually responsible and, even if they were, one only has to cast one’s mind back to the terms on which Clive Briault was exceedingly comfortably eased out. It’s disgusting.

  7. The FSA can be as self critical as it chooses to be – it couldn’t possibly criticise itself as much as everybody else has.

    Ultimately, it doesn’t matter as they are accountable to nobody and they know it.

  8. Lord Turner is either in the pockets of the Bankers or he is just too plain stupid to hold his position at the FSA. Either way, it is clear to me that the recession was created by Bankers Abuse – of the weak-soft touch regulation by Politicians.

    Now, consider this scenario where you close your front door, but do not double lock it. Should you be blamed if somone breaks into your house? Should you get a slap on the wrist for being careless? Or maybe, the intruder, who had no authority to break-in should be placed in hand-cuffs – awaiting trial? I think the latter has it – I think the latter has it!

    Why on earth aren’t these bankers who were responsible for banking fraud – especially as they own the credit rating agencies and continued lending even though their balance sheets were showing signs of low repayments – though they continued to earn excessive renumeration from it all? Wow! THIS IS FRAUD! It goes by no other name. What is interesting is that the weak regulation was wrong. However, the break-in was clearly done by the Bankers themselves!! If it were you or me we’ll be in hand-cuffs right now. Why not the Banksters??!!

    What also is grossly negligent is that now the poorest, disadvantaged and hard working now has to pay for all this mess. It is a Disgrace!! Did these bankers lose them home(s)? NO! Did these Banksters lose their jobs? NO! Were these Banksters subjected to a Police investigation? NO!

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