RBS fined £5.6m over accounts

State-rescued Royal Bank of Scotland has been fined more than £5.6 million, mainly for the incorrect reporting of transactions over a six-year period, a British financial watchdog announced on Wednesday. "The Royal Bank of Scotland has been fined £5,620,300 ($8.63 million, 6.51 million euros)," the Financial Conduct Authority said. This was for "incorrectly reporting transactions they made in wholesale markets, and in some instances, failing to report transactions at all," the FCA said in a statement. RBS was rescued with £45.5 billion of British taxpayers' cash following the 2008 global financial crisis, making it the world's biggest ever banking bailout. RBS "failed to properly report 44.8 million transactions between November 2007 and February 2013; and failed altogether to report 804,000 transactions between November 2007 and February 2012", the FCA said. The FCA said that many of the problems had been compounded by the bank's takeover of Dutch rival ABN Amro at the height of the market in late 2007 that preceded the global economic crash the following year. "Effective market surveillance depends on accurate and timely reporting of transactions," said Tracey McDermott, the FCA's director of enforcement and financial crime. "We have set out clear guidance on transaction reporting, backed up by extensive market monitoring, and we expect firms to get it right. "As well as a financial penalty, firms can expect to incur the cost of resubmitting historically incorrect reports. We will continue to take appropriate action against any firm that fails to meet our requirements," she added in the statement. RBS said it had cooperated full with the regulator over the issue, adding in a statement: "We regret the failings that were uncovered and have subsequently made significant investments to our systems and controls in this area." British finance minister George Osborne last month ordered a review into whether RBS should be split into 'good' and 'bad' banks, with the latter housing written-off assets, as part of the government's plan to return the lender to the private sector. RBS, 81-percent owned by the government, announced in June that chief executive Stephen Hester would soon be stepping down after five years in the role. Hester's exit due later this year surprised Britain's financial sector because he had previously said that he wanted to complete the Edinburgh-based bank's difficult journey out of government ownership back to the private sector. Analysts believe that Osborne wanted a new face to help guide Royal Bank of Scotland's exit from government control, which is not expected until late 2014 at the earliest. Hester, who was effectively hired by the government, has earned the respect of the business community by axing 41,000 jobs, selling non-core assets and transforming the lender's balance sheet. But unions have been scathing of his management, especially as the massive jobs cull occurred alongside Hester earning millions of pounds in salary during his time in charge.