A report into the collapse of the Royal Bank of Scotland will reveal the extent of the regulator’s failings, the Financial Services Authority has said.  At an annual public meeting for the FSA, attendees were told that the analysis should show how the regulatory approach was “deficient” and “inadequate.”  FSA Chairman Adair Turner said the report will cover these 3 subjects:

1. Description of the combination of factors which led to RBS’s failure.
2. Summary account of the issues which FSA's enforcement division investigated, and an explanation of why it concluded that there were not grounds for a successful enforcement action.
3. Account of how FSA regulated and supervised RBS before the crisis.

Lord Turner added that the FSA’s regulatory failures meant that banks were managed with a lack of capital and an over-reliance on short-term funding.  The FSA originally did not intend to make public details of the report.  [C-I Note:  But this era of disclosures, openness - especially on the internet - FSA had few if any other options.]    [bobsguide.com, 6/24/11]