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.
More top news
UK airport passengers have to walk up to a kilometer from check-in desks to reach their departure gates, new research has shown.
In an annual survey taken among local authorities in the UK, 2,463 stray dogs were put to sleep between April 2015 and March 2016.
Inspectors found the availability of drugs at HMP Bedford was having a "serious impact" on safety.