The City watchdog is to call in a powerful Commons committee boss to salvage its long-delayed report into the collapse of the Royal Bank of Scotland after hitting a legal stumbling block, it has been reported.
The Financial Services Authority (FSA) is expected to admit defeat in efforts to publish its controversial report into RBS, which it had originally pledged to publish in March, according to The Sunday Telegraph.
Andrew Tyrie, chairman of the cross-party Treasury Select Committee, is understood to be in talks to be appointed "independent validator" of the report as the FSA seeks to head off criticism over its failure to produce the document.
The FSA is said to have been unable to overcome legal complexities in getting a report cleared by RBS lawyers.
Lord Turner, chairman of the FSA, was forced to promise a more in-depth report into the failure of RBS in an open letter after the regulator came under heavy political and public fire for its original decision not to reveal details of its investigation.
But it has already missed its March deadline and cannot give an updated timetable on when the report is due.
The FSA declined to comment on the appointment of Mr Tyrie, although it is believed a statement is due soon confirming his role and how the inquiry will progress.
RBS is now 83% owned by the taxpayer after the bank failed at the height of the financial crisis - largely blamed on its takeover of Dutch bank ABN Amro just as the credit crunch tore through world markets.
The FSA waved the deal through and there have been questions over why RBS was allowed to let its capital ratio - a key measure of bank strength - reach levels that left it unable to absorb market shocks.
