FSA set to ban former RBS boss
The Financial Services Authority (FSA) is rumoured to be on the verge of banning former Royal Bank of Scotland investment banking division guru Johnny Cameron from ever working in the city again. It would appear that Mr Cameron has taken the brunt of the regulator's disdain at so-called "casino investment banking" although there are rumoured to be more names on the FSA's list.
Much of the problems associated with Royal Bank of Scotland's investment banking division can be traced back to the disastrous takeover of Dutch outfit ABN Amro which for a short while saw Royal Bank of Scotland become the largest bank in the world. However, in hindsight many people believe that the company overpaid for the Dutch outfit and it was effectively this transaction which weakened the company's finances resulting in the UK government finally having to take a 84% stake in the business at a cost to UK taxpayers of £46 billion.
While there is no doubt that mistakes were made at Royal Bank of Scotland is it really fair to blame one man for the collapse of the UK banking sector? Many people still believe that politicians around the world are using the banking crisis as a means of passing the buck and passing the blame to the engine room of the worldwide economy. When worldwide politicians need financial assistance in the future, will the worldwide financial sector be forthcoming?
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