The FSA report into the near collapse of Royal Bank of Scotland is not comprehensive because representatives from the regulator were not interviewed, says Lord Myners.
The report,carried out by PricewaterhouseCoopers, clea – red the bailed-out bank’s senior staff of wrongdoing. The regulator claims it cannot publish information from the report without the consent of RBS as it did not lead to enforcement.
Speaking to Money Marketing, Myners, who took a critical part in the RBS bailout negotiations as City minister, says: “I fail to see how the report can be comprehensive without looking at the interplay between RBS, its regulator and the central bank.”
Myners was told in a Parliamentary written answer from Treasury commercial secretary Lord Sassoon on January 10 that, in compiling the FSA report, no ministers or officials from the Treasury, business department or the FSA were interviewed.
Myners says: “Many people will be surprised that the FSA in particular was not interviewed, to give a better understanding of the interface between the bank and the regulator over capital- raising and the acquisition of ABN Amro.”
RBS paid £49bn in October 2007 for around 86 per cent of Dutch bank ABN Amro which was later found to be loaded with toxic assets. A year later, RBS got a £20bn bailout and access to wider support schemes worth £500bn. Myners came in as City minister in the middle of the discussions for the RBS bailout.
In a letter to Treasury select committee chairman Andrew Tyrie in December, FSA chairman Lord Turner said the report was not intended to look at FSA failings but that “a publishable report” which the regulator hopes to release in March will look at “lessons to be learned” from supervisory failings.