RBS Chairman Says Bank’s Directors Failed Duty, Guardian Says
Stock Chart for Royal Bank of Scotland Group PLC (RBS)
Royal Bank of Scotland Group Plc Chairman Philip Hampton said former directors failed in their fiduciary duty by not scrutinizing the bank’s purchase of ABN Amro Holding NV, the Guardian reported, citing a U.S. embassy cable published by WikiLeaks.
RBS made a number of “enormous” mistakes during the credit crisis, including adding to its exposure to the U.S. subprime mortgage market and failing to carry out adequate due diligence when it acquired the Dutch lender, the cable, dated Sept. 11, 2009, cited Hampton as telling a group of U.S. politicians at a private meeting, according to the Guardian.
Linda Harper, a spokeswoman for RBS, declined to comment on the report.
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