guardian.co.uk,
Jill Treanor and Simon Bowers, Monday 12 December 2011
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| Lord Turner, chairman of the Financial Services Authority wants regulators to have powers to monitor bank takeovers. Photograph Antonio Olmos for The Observer |
Lord
Turner, chairman of the Financial Services Authority, called for a debate over
changing the rules to allow bosses of failed banks to be automatically banned
or stripped of their pay after the regulator was forced to explain why it had
not taken disciplinary action against former directors of the Royal Bank of
Scotland.
He also
said that regulators should be given powers to formally authorise or prevent
future bank takeovers after the FSA did not intervene to stop RBS taking over
ABN Amro.
The FSA
made clear, however, that if former RBS directors applied to work in the City
again it would take into account their "competence" before approving
them.
The
regulator added that Johnny Cameron, the former head of the investment bank,
would not have met its current standards for approval.
Vince
Cable, the business secretary (left) is reconsidering whether there are any
grounds to ban individuals as company directors, having concluded that the
initial information provided to him did not provide sufficient grounds for any
ban.
After
receiving the full FSA report yesterday, Cable said he was appointing legal
counsel to advise him.
The
auditors, Deloitte, may also face an investigation from the Accountancy and
Actuarial Discipline Board, which regulates accountants and to which the FSA
has also handed its report into what went wrong at RBS.
The
discipline board would also have the opportunity of reviewing the role of the
former RBS chief executive, Sir Fred Goodwin, who is a chartered accountant.
Jill Treanor and Simon Bowers
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