Sir Fred Goodwin to be quizzed by FSA, newspaper reports claim

16 June 2010

The Financial Services Authority (FSA) is to question former Royal Bank of Scotland chief executive officer (CEO) Sir Fred Goodwin over the bank’s managerial practices in the run up to its near-collapse, news reports have claimed.

According to the Times, the former banking chief was expected to be questioned by FSA investigators at his lawyer’s office over his role in the bank’s decline.

Goodwin left the post after the financial institution was forced to borrow £20 billion from the UK government during the credit crisis.

The bank was forced to seek fiscal support from the authorities after it headed up a consortium which successfully acquired Dutch financial services firm ABN Amro.

Simon Morris, a lawyer at CMS Cameron McKenna in London, of Goodwin, told Bloomberg: “The FSA has got to find some wrongdoing, and they can do that if they think Sir Fred breached the principles of senior management.

“They could ban him, they could take a fine against him, and it would be an exceedingly high-profile scalp, more so than Johnny Cameron.”

Mr Cameron previously worked as head of RBS’ investment division and was banned by the FSA from working in a senior role within the City earlier in the year.

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