RBS chiefs foolish not criminal, FSA finds
Investigations, aided by PwC, finds bad decisions did not amount to fraud
ROYAL BANK OF SCOTLAND executives were foolish but not fraudulent in the run up to the bank’s near-collapse, an investigation by the Financial Services Authority (FSA) aided by Big Four firm PwC has found.
RBS executives made “a series of bad decisions” but this did not amount to “fraud or dishonest activity by RBS senior individuals” the FSA announced today.
“The review confirmed that RBS made a series of bad decisions in the years immediately before the financial crisis, most significantly the acquisition of ABN AMRO and the decision to aggressively expand its investment banking business,” the FSA said in a statement.
“However, the review concluded that these bad decisions were not the result of a lack of integrity by any individual and we did not identify any instances of fraud or dishonest activity by RBS senior individuals or a failure of governance on the part of the Board.”