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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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.