Royal Bank of Scotland
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Report catalogues RBS errors

Royal Bank of Scotland nearly collapsed in 2008 because of poor management decisions, inadequate regulation and a flawed supervisory system, a Financial Services Authority report says.

The FSA admits that its own supervision was "flawed" and "provided insufficient challenge" to RBS.

And it says RBS had too weak a capital position to proceed with the takeover of parts of the Dutch bank ABN Amro.

The £49bn purchase took place at the height of the financial crisis in 2007.

Joe Lynam reports.