TSC's four lessons learned on RBS failure

There are many lessons to be learned from the near-collapse of RBS. Special advisers to the Treasury Select Committee Bill Knight and Sir David Walker set out what they believe were the four main mistakes which led to the bank's downfall - and how to avoid them in future.

In their review of the evidence compiled in an FSA report into the regulator's supervision of RBS, Knight and Walker said: "There are many lessons to be learned from the failure of RBS. We wish to emphasise one critical generic point - the overriding importance of prudence in banking. "Anyone who doubts the need for prudence in circumstances of such vulnerability should read the story of the failure of one of the largest banks in the world - the Royal Bank of Scotland." Here are their four key lessons they now think the financial industry should have learned: 1. CEO's responsibili...