FSA had no jurisdiction to block ABN Amro takeover, Sants says

31 January 2012 at 15:20

FSA had no jurisdiction to block ABN Amro takeover, Sants says Hector Sants has said the Financial Services Authority (FSA) had no power to prevent the Royal Bank of Scotland’s £49 billion acquisition of Dutch bank ABN Amro.

Addressing the Treasury Select Committee yesterday (January 30th), the chief executive of the regulator suggested that despite reviewing the takeover, it was not possible for the regulator to block the deal that exacerbated RBS’ failings, costing the taxpayer £42 billion.

Mr Sants defended his position, saying the former FSA head John Tiner was to blame for allowing the deal, admitting he should have spoken out louder himself to object.

The Daily Telegraph quoted Mr Sants as saying: “I have no doubt that RBS would not have had a rights issue of the scale it did without my personal insistence.”

Mr Sants is due to become deputy governor of the Bank of England when reforms to financial services see the introduction of the FCA and PRA.

Posted by Tony Miller ADNFCR-3006-ID-801279489-ADNFCR

Related articles:

FSA drafts recovery and resolution plan in the event of crisis

11 May 2012 at 14:00

The Financial Services Authority (FSA) published an update on recovery and resolution plans for firms in the event of another crisis yesterday (May 10th).

Wheatley says FCA will be forward looking in regulatory approach

10 May 2012 at 19:00

Managing director of the Financial Services Authority (FSA) Martin Wheatley said today (May 10th) that the incoming Financial Conduct Authority (FCA) would take heed of the past mistakes of the FSA.

Investment provider warns FSA of potential fixed-term annuity mis-selling

10 May 2012 at 13:37

A leading investment provider in the UK has warned the Financial Services Authority (FSA) that there is a risk of mis-selling fixed-term annuities, it has been reported.

Third of millionaires trust IFAs

09 May 2012 at 15:05

A third of the UK’s highest earners trust the recommendations made by their independent financial advisers (IFA), according to figures published today (May 9th).

FSA fines insurance firm £3.5m for corporate governance failings

08 May 2012 at 16:14

The Financial Services Authority (FSA) has fined an insurance company £3,345,000 for serious corporate governance failings, it was announced today (May 8th).