Britain's Financial Services Authority (FSA) published Monday its report into the near-collapse of Royal Bank of Scotland during the 2008 credit crisis.
Below is a summary of some of the report's main findings and recommendations.
MAIN REASONS FOR RBS' NEAR-COLLAPSE IN 2008:
* Poor decisions by RBS' management and board
* Flaws in the FSA's approach to regulation.
* Lack of appropriate due diligence on the ABN AMRO deal.
FSA'S PROPOSALS FOR FUTURE REGULATORY CHANGES:
* Calls for public debate about changing laws so that, in future, bank executives can face personal consequences in the case of a bank failure.
* New rules to make sure that bank executives and boards place greater weight on avoiding any bank failure.
* Setting out ways to ensure that the risk/return balance at a bank is different from that of a non-banking firm.
* Looking at ways to ban executives of failed banks from future positions of responsibility, or changes to remuneration to ensure that a very significant proportion of executives' pay is deferred and forfeited if a bank fails.
* Major bank acquisitions should, in future, need more explicit regulatory approval.
REPORT'S FINDINGS ON EX-RBS CEO GOODWIN:
* Report reiterates that there was not sufficient evidence to bring enforcement action which has a reasonable chance of success in Tribunal or court proceedings.
* No evidence to back up claims that Goodwin had a bullying management style.
* Interviewees told the FSA that Goodwin could be both courteous and professional and cold, analytical and unsympathetic.
* Ex-RBS executive Johnny Cameron told the FSA that Goodwin was an optimist and he tended to take an optimistic view of what was likely to happen and had often in his life been proved right. This may have clouded his judgement over the ABN AMRO deal.
ON FORMER BRITISH PRIME MINISTER GORDON BROWN:
* A sustained political emphasis on the need for the FSA to be 'light touch' in its approach and mindful of London's competitive position.
* The then Chancellor, Gordon Brown, on several occasions in 2005 and 2006, made it clear that there was a strong public policy focus on fostering the 'competitiveness' of the UK financial services sector, and a belief that unnecessarily restrictive and intrusive regulation could impair that competitiveness.
(Reporting by Sudip Kar-Gupta and Steve Slater; Editing by Jon Loades-Carter and Helen Massy-Beresford)