UK regulation failures behind bank crisis

Commenting on the Financial Services Authority report published into the collapse of RBS, SNP Westminster Treasury spokesperson Stewart Hosie MP said the findings exposed the systematic failure of successive UK Governments to provide proper regulation of the banks.

Mr Hosie – a Member of the Treasury Select Committee – said:

“While the executive management at RBS must take responsibility for their disastrous decisions, it is clear from this report that Westminster’s catastrophic regulatory and supervisory failures were the co-authors to the banking crisis.

“The admission that there were just six FSA staff engaged in scrutinising the activities of one of the world’s largest banks underlines the deficiency of the controls that existed.

“Not only does the FSA report show that the UK Government was not prepared for a financial collapse, but that they ignored the warnings. For the Shadow Chancellor, the last Labour government’s age of irresponsibility is catching up with him.

“The evidence over who is responsible for the economic crisis, and the regulatory failures which contributed to it, all lead directly back to Downing Street. The failure of regulation was ‘made in Downing Street’ – numbers 10 and 11.

“There are no shortage of commitments by the previous Prime Minister to put in place ‘limited regulation’, indeed, Gordon Brown even pondered whether there should be any regulation at all.

“The financial incompetence of UK authorities, who have presided over the biggest boom and bust in the Western world, is a strong argument for independence, not an argument for the continuation of London mismanagement.”