Regulators should be given greater powers to block hostile bank takeovers in order to avoid a future crisis like the one that forced Royal Bank of Scotland's (RBS's) into a £45bn taxpayer bail-out, the chairman of the Financial Services Authority (FSA) will say on Monday.
The FSA report, which runs to about 490 pages, is now in its final draft, according to Sky News. One version reportedly said RBS's decision to bid for ABN Amro was "on the basis of limited due diligence created a degree of risk-taking that can reasonably be criticised as a gamble". The report is expected to raise the prospect of bank directors being forced to prove their innocence in the event of a future bank failure. They could also be obliged to forfeit remuneration, and face toughening laws governing directors' liability in the event their bank goes bust. The FSA could also rec...
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