The former boss of Royal Bank of Scotland's investment banking arm, Johnny Cameron, today said he is taking his "share of responsibility" for the collapse of RBS and has pledged that he will never run a bank again.
Cameron has agreed to be banished from the City following an investigation by the Financial Services Authority into his management of the troubled division. The City regulator has also agreed not to pursue any disciplinary action against him. Cameron, who was a close colleague of former RBS chief executive Sir Fred Goodwin, has agreed not to perform any "significant influence function" at a City firm or "undertake any further full-time employment in the financial services industry". But he will be able to take on "part-time consultancy work in the financial services industry provided that the work does not involve performing activities which would require approval for a significant influence function," the FSA said.
RBS was bailed out by the taxpayer in October 2008 and the government eventually spent £45bn buying shares in the Edinburgh-based bank which is continuing to make losses.
Cameron said: "Given the losses sustained by RBS in 2008, as a director of the Royal Bank of Scotland Group, I recognise that it is appropriate that I take my share of responsibility, and I will not be seeking another managerial role in the financial services industry. I am pleased that the FSA has concluded its year-long investigation."
The FSA, which has been investigating the systems and controls in place in RBS's so-called global banking and markets arm grants an authorisation to any individual wanting to take a role in the City and is able to withdraw the licences to operate as well.
The FSA said it would have attempted to put a formal ban on Cameron had he not voluntarily agreed not to take on a senior role again.
"Were it not for this undertaking, it was the FSA's intention to take steps to seek to prohibit Cameron from performing any 'significant influence' function or any function held in full-time employment in relation to any regulated activity carried on by any authorised person, exempt person or exempt professional firm," the FSA said.
"On the basis of the information available to it, the FSA believes that Cameron would not meet its current standards for approval for a significant influence function," the regulator added.
The FSA will not take any disciplinary action and stressed that it had "not made any findings of regulatory breach against Cameron and he has not made any admissions".
Cameron has already made two attempts to return to work since leaving RBS in January 2009. The FSA blocked his efforts to take up a role at City advisory firm Greenhill while its investigation into RBS continued. His appointment at headhunter Odgers Berndtson lasted just days after UK Financial Investments, which looks after the taxpayer stake in RBS, withdrew a crucial contract from the firm.
Cameron's decision not to seek another role highlights the contrasting fates of executives since the banking crisis. Andy Hornby, chief executive of HBOS when it had to be rescued by Lloyds, is now chief executive of privately owned pharmacy business Alliance Boots and will tonight deliver a high-profile lecture on retailing.