Risk Audit - Training and Recruitment
Tuesday, 31 January 2012

FSA Powerless

According to Hector Sants, the chief executive of the Financial Services Authority, the regulator did not have the power to stops Royal Bank of Scotland acquiring ABN Amro.

This is in spite of the fact that the FSA felt the deal was “highly risky”.

He told the Treasury Select Committee that the fact RBS met its capital requirements before and after the deal was the determining factor.

I would argue that the FSA’s principles-based regime gave the regulator plenty of scope to block the deal.

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