In a long awaited 452 page report into what went wrong at Royal Bank of Scotland, Lord Turner, chairman of the FSA said that the public wants to know how the bank failed and why no one has been punished.
"The fact that no individual has been found legally responsible for the failure begs the question: if action cannot be taken under existing rules, should not the rules be changed for the future?" Turner said.
"In a market economy, companies take risks on behalf of shareholders and if they make mistakes, it is for shareholders to sanction the management and board by firing them.
But banks are different, because excessive risk-taking by banks, for instance through aggressive acquisitions, can result in bank failure, taxpayer losses, and wider economic harm. Their failure is a public concern, not just a concern for shareholders," he added.
Monday, December 12, 2011
RBS failure caused by 'multiple poor decisions' | Business | guardian.co.uk