FCA proves to be a paper tiger in case of RBS mistreatment

Lack of power to act will feed belief that those who caused crash have escaped punishment

The Financial Conduct Authority is usually described as the City's watchdog. In the case of the disgraceful treatment of small businesses by the Royal Bank of Scotland's global restructuring group the FCA has proved to be a paper tiger.

Let's be clear. Businesses were badly and systematically let down by GRG, a unit that was specifically created by RBS to help customers cope with the tough business conditions created by the financial crisis of a decade ago.