FSA slammed over RBS takeover

The City watchdog has been accused of "serious misjudgment" in its failure to step in and block Royal Bank of Scotland's disastrous takeover of Dutch rival ABM Amro.

FSA comes under widespread criticism in report

The FSA comes under widespread criticism in the report saying its failures in the saga "amount to a serious indictment" of bosses at both the bank and the regulator.

The committee also hit out at the FSA for needing to be strong-armed into producing a report into RBS, published last December.

The FSA originally decided not to produce a report into the RBS collapse until bowing to Parliamentary pressure.

But the committee found the FSA's report did give a fair picture of events surrounding the bank failure and subsequent bailout.

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City watchdog criticised over RBS

The Financial Services Authority has been criticised over its failure to step in and block Royal Bank of Scotland's takeover of ABM Amro. Credit: PA Wire

The City watchdog has been accused of "serious misjudgment" in its failure to step in and block Royal Bank of Scotland's disastrous takeover of Dutch rival ABM Amro.

A report by MPs on the Treasury Select Committee slammed the Financial Services Authority (FSA) for the part it played in the failure of RBS, which saw the taxpayer stump up £45.5 billion to prevent it from collapse.

The committee said the FSA's biggest fault was not intervening to stop the "calamitous" near-£50 billion ABN takeover and is urging the Government to legislate to ensure the regulator is explicitly required to approve major bank acquisitions to prevent a repeat of the fateful deal.