PwC called in to investigate IT collapse at RBS

PWC HAS BEEN drafted in by RBS’s board to investigate the meltdown of the bank’s computer systems this summer, which caused customers to be unable to withdraw money and accounts to freeze.

Sky News reports that law firm Clifford Chance has been conducting a probe into the fiasco, with initial results showing that both the bank and the software supplier were at fault.

Financial Services Authority chairman Lord Turner wrote a letter to Treasury Select Committee chairman Andrew Tyrie explaining that the watchdog had informed RBS it needed a separate review.

“We will require a separate full review to be undertaken by an independent skilled person to establish what went wrong and why, and to provide an assessment of the consequences and the subsequent management of the IT failure. This will include understanding why it took longer to resolve the Ulster Bank position. On receipt of the independent review, we will consider whether further regulatory action is required,” the letter said.

It was also reported in the Financial Times that senior managers of all the major banks have been asked to submit a report on contingency plans in the event of an IT collapse to restore service “within an acceptable timeframe”.