RBS admits mistakes in going Dutch

Royal Bank of Scotland chairman Sir Philip Hampton has admitted "several enormous mistakes" were made in the run-up to the banking crisis.

According to WikiLeaks, he told US politicians that RBS directors had failed in their "fiduciary responsibilities" and had not carried out proper due diligence before the ill-fated purchase of Dutch bank ABN Amro.

He is said to have made the remarks in September last year at a meeting, nine months after his appointment.

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Meanwhile, Labour's former City minister Lord Myners, who was instrumental in securing Lloyds' takeover of HBOS, has called for the big banks to be broken up.

He said: "The future lies in less monolithic institutions.

"The banking commission must give proper consideration to splitting one or both of Lloyds Banking Group and the RBS."