Rbs Case

The report blames both RBS management and FSA watch for not beholding the problems. Which party is most to blame? Please explain.

The report does adapt that the FSA supervisions and regulatory framework was not qualified to prevent the RBS chastening and the FSA in part is to be blamed for, but suggests that overall, the disappointment is largely due to the wretched decisions of the RBS management. However, we believe that in fact, the wishing of FSA supervision was more than to blame for the failure of the RBS. Despite the poor decisions of the RBS management leading to a larger failure than otherwise banks, the RBS in most part was within the regulations. Since the failure of banks, impertinent other business, concern the public as a whole, the supervisions should live been stricter and prevented such poor decisions. The FSAs overall pre-crisis supervisory uprise was inadequate, with overly reactive approach and insufficient data visible(prenominal) to assess prudential risk fully.
According to the report, the FSA supervision team up failed to consider prudential matters in large part, and when it did, it only centre on the capital requirements and resources and did not routinely consider residue sheet leverage.



The team failed to raise concerns about the size, leverage, or bit of RBSs balance sheet, which would dumbfound signaled the concerns of RBS taking more and more leverage prior to the crisis. The failure of the supervision team to goal this allowed for the RBS to operate on a high risk. Also, the FSA failed to collect sufficient data to fully analyze the RBS. The report mentions that this may have hampered the FSAs supervision of the RBS but could not have been a factor in firms failure. But, this seems like an apologize since the whole point of the supervision is to identify the factors that could potentially curtilage failure, and advise the banks to take measures to prevent it. Of course the failure of supervision did not directly cause the crisis of the RBS, but it allows for...If you want to contribute a full essay, order it on our website: Ordercustompaper.com



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