FSA liability to bank shareholders

What liability does the FSA have to shareholders in RBS, HBOS and Bradford and Bingley?

Hector Sants admitted that the FSA had inadequate controls in place at the time of the Northern Rock problem. When testifying to the Treasury Select Committee he stated that "lessons had been learned" and changes made.

The FSA has since then stated that they were closely monitoring the financial position of all UK banks. How, therefore, were apparently inadequate rights issues allowed to proceed with offer documents that must have been seen by the FSA?

How could the FSA state they were investigating the short-selling of HBOS and state that the bank was adequately capitalised?

It has, within a matter of weeks, become apparent that these banks needed billions of pounds in order to be adequately capitalised. Investors relied on information provided by the FSA and have, as a result, lost substantial amounts. What responsibility does the FSA have?