FSA launches reviews of RBS`s acquisition of ABN Amro

image The Scottish bank said on Sunday that Britain’s financial regulator has launched a supervisory review of Royal Bank of Scotland’s takeover of ABN Amro. The review would look into the "whys and wherefores" of RBS’ battle with Barclays and what due diligence was performed, the Daily Telegraph said.

The Financial Services Authority notified the group in April 2009 that it would carry out the review, the bank said in a note in its half-year results.

The bank led a European consortium that also included Santander and Fortis to buy Dutch bank ABN Amro for 70 billion euros in October 2007, outgunning Barclays to land the deal by paying a higher price mostly in cash. The consortium was criticised for not cutting its offer as the financial crisis began before the deal was sealed.

RBS paid about 10 billion pounds for its portion, mainly investment banking business.

RBS, which became financially stretched by the deal, was forced to surrender a majority stake to the government in return for a 20 billion pound taxpayer-funded bailout last year after it was hit by spiralling losses on risky credit-backed assets.

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