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18 Aug 2009
The Financial Services Authority is investigating the details over the Royal Bank of Scotland's acquisition of ABN Amro for €14.3bn (£12.43bn) which was largely blamed for the banks downfall.
RBS made the announcement of the investigation, which is to have a particular focus on how the bank raised the capital, in its interim results released this month, the Financial Times reported.
A footnote read: 'In April 2009 the FSA notified the group that it was commencing a supervisory review of the acquisition of ABN Amro in 2007 and the 2008 capital raisings.'
'The group and its subsidiaries are cooperating fully with this review' it added.
The ABN acquisition was largely blamed for both the £12bn rights issue needed by RBS and its subsequent bailout by the government.
The government pumped £20bn into the Edinburgh-based bank and now owns 70% of it.
The acquisition was undertaken by former chief executive Fred Goodwin, who was ousted last year.
On the back of the FSA investigation announcement yesterday, shares in RBS fell by 1.26p.
The shares are currently trading at 90% less than their peak in 2007, around 550p, and were on sale for 44.89p by 12:30pm yesterday.
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Visitor comments Add your comment
why investigate ...
... we all now know it was just another costly Goodwin ego trip
Posted by: Nathanial West, 18 Aug 2009 | 00:00
FSA is an extra burden on tax payer
Even though Conservative party is not the best for the UK economy, still lack of leadership in Labour might make Conservative the ruler once again. In that case Bank of England shall get its powers back and FSA shall be ceased to exist.
It?s true that FSA gives a lot of guidance for the regulated activities, but things like insurance scam, bank going bankrupt etc are happening right under the nose of it. I don?t see FSA worked; otherwise we the tax payers would not have been in this terrible mess.
FSA?s post mortem investigation will do nothing but fill up some pockets of reached consultants. This will happen again unless these regulatory authorities stay vigilant with day-to-day activities of regulated market or else it would be waste of time and money.
I am tired of hearing, ?we have lessons to learn?.
Posted by: Indranil Chakraborty BCOM(Hons), MCOM, FCMA, 18 Aug 2009 | 00:00
Horse - bolted
This all seems to late now. Surely the FSA would be better occupied sorting out the future not trying to cover its back for past mistakes.
Posted by: Alan Kennedy, 01 Sep 2009 | 00:00