Dynamic Wealth Management Headlines:Crisis Report on RBS Collapse to Undergo Scrutiny

http://dynamicwealthmanagementreports.com/?p=7May 06, 2011 /The Treasury Select Committee (TSC) has called in two independent reviewers to look into the crisis report to be issued by the Financial Services Authority regarding the failure of Royal Bank of Scotland (RBS).

Similarly, a non-executive sub-group of the FSA Board chaired by Brian Pomeroy will conduct a separate review on the process and findings of the FSA’s report. The separate review is expected to “interface as appropriate with the independent reviewers.”

The report was prepared by accounting firm PricewaterhouseCoopers. In mid-December 2010, FSA chairperson Adair Turner conceded to different calls asking the financial regulator to reveal the full report on the collapse of Royal Bank of Scotland, with business secretary Vince Cable having met with Turner to urge him to disclose full details of it as much as possible. Turner gave in to the pressure and said the FSA would publicly disclose the crisis report by the end of May. Turner earlier refused to make the report public despite the approval of former RBS CEO Fred Goodwin to open the report. Last year, the FSA closed its investigation into the RBS collapse without taking to task the individuals liable for the incident, causing a public uproar. Now, with the independent review being slated to kick off soon, further delay on the disclosure of the report is expected as TSC chairperson Andrew Tyrie confirmed that the committee has appointed David Walker and Bill Knight to conduct an independent review on the report. Walker is currently the senior adviser to US bank Morgan Stanley while Knight is the solicitor and Chairman of the Financial Reporting Review Panel and director of the Financial Reporting Council. Their appointment came after the FSA and TSC discussed on how to ensure that the report “will be seen as a rigorous and transparent account of the different factors” that helped to bring RBS down.