RBS chiefs face grilling at Westminster over collapse

Oct 19 2008 By Charles Lavery

ROYAL Bank of Scotland directors are to be grilled in Parliament over their part in its collapse.

The 13 non-executive board members will be asked what they do to earn a combined s1million-plus a year.

MPs will be asking questions on behalf of taxpayers who part-own the bank after a Government bail-out this month.

Chancellor Alistair Darling agreed to buy a majority share to save RBS going to the wall.

That left their board in control of taxpayers' money and directors will have to answer to the Treasury Select Committee.

Yesterday committee chairman John McFall, Labour MP for West Dunbartonshire, said: "We will have an inquiry into this crisis.

"One of the fatal weaknesses in the banking crisis has been the role of non-executives.

"Are they there to scrutinise the board or just for adornment?"

An email address has been set up for the public to send questions to the Chancellor, the governor of the Bank of England and bank watchdog the Financial Services Authority.

McFall added: "Taxpayers are naturally very concerned about the scale of this government investment."

Sir Fred Goodwin was ousted as chief executive of RBS last week but non-executive directors' positions are untouchable for three years.