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.