UK Proposes Criminal Sanctions For Failed Bank Heads

Law360, Washington (July 3, 2012, 6:45 PM EDT) -- In an effort to combat what it sees as extreme risk-taking in banking institutions, the U.K. government is considering imposing new criminal sanctions and employment restrictions for heads of failed banks, the finance ministry announced Tuesday.

The ministry cited a December 2011 Financial Services Authority report on the failure of The Royal Bank of Scotland PLC as the catalyst to the proposed regulations, saying five of the six factors of RBS' failure were due to human error. Under the proposed sanctions, bank executives could be banned...
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