UK - FSA to review RBS allegations of intimidation

Mon, Mar 23, 2009

Media speculation in the UK suggests that labour leader Lord Foulkes has written to the FSA. The letter requests a review of Royal Bank of Scotland (RBS) to ascertain whether there was intimidation of non-executive directors at RBS before it was bailed out by taxpayers.

RBS was bailed out by the government in October 2008 and taken into 68% public ownership. Ulster Bank is wholly owned by the Royal Bank of Scotland Group.

RBS has rejected suggestions that information was held back from its board relating to subprime mortgages bought by traders before the bank's collapse.

Reports suggest that the FSA has confirmed receipt of the letter and will be looking into the allegations, but did not comment on the issues raised.

 

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