RBS directors let off without facing action in FSA probe

In 2009, FSA launched investigation into RBS' 2007 acquisition of ABN Amro

The Financial Services Authority (FSA) is set to announce the commencement of its investigation on Royal Bank of Scotland (RBS) and will not be initiating any action against the bank's former directors which includes chief executive Sir Fred Goodwin, reports the Guardian.

Accounting firm PricewaterhouseCoopers - which was appointed by the FSA to undertake a thorough analysis of the events that led the Edinburgh-based bank to the verge of collapse in 2008 - has reported in its findings that although the group's senior management made some questionable decisions, there was no basis for legal action against them.

The FSA, in 2009, launched investigation into RBS' 2007 acquisition of ABN Amro and subsequent fund-raising ventures that it conducted to boost revenues.

The City regulator in particular examined the "conduct, systems and controls" in place at the group's investment banking arm at the time.

"It's clear to me that what happened was a series of major misjudgements about lending decisions and the acquisition of ABN Amro. These were very big, bad business judgements, but they were not acts of criminal vandalism. People made mistakes," said RBS chairman Sir Philip Hampton.