Professor Philip Lane:

The investigation is not specific to Royal Bank of Scotland. The issue of misconduct scandals and following up on what went wrong and how it was handled is very widespread. There is a commission of investigation under way in Australia about misconduct there. We are in alliance with our fellow regulators in terms of a rethink on how we strike a balance between banks making bad judgment calls versus embedded cultures of misconduct. The culture report which we are doing now, which we will deliver in terms of the consolidated report to the Minister mid-year, is part of a global issue. Regulators do need to rethink how they interact with these firms given the accumulated evidence and the many billions in fines, whether in the US, across Europe or elsewhere. This is an important time for a rethink in terms of how these firms conduct themselves. The firms, too, are also rethinking their operating structures because this crisis has been very expensive for them. As regulators, we need to rethink how we manage regulation of conduct.