FSA demands inquiry over RBS IT failures

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Financial Services Authority (FSA) chairman Lord Turner has promised an independent inquiry into an IT glitch that affected millions of Royal Bank of Scotland (RBS), NatWest and Ulster Bank customers in June.

The bank was forced to set aside £125m in compensation for the error, with the regulator refusing to rule out further regulatory action. In correspondence between Turner (pictured), RBS chief executive Stephen Hester and Treasury Select Committee (TSC) chairman Andrew Tyrie, Turner said an internal review promised by Hester was unsatisfactory. "While the firm has put in place its own independent review, we have informed RBS that we require a full separate review to be undertaken...

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