Royal Bank of Scotland nearly collapsed in 2008 because of poor management decisions, inadequate regulation and a flawed supervisory system, a Financial Services Authority report says.
The FSA admits that its own supervision was "flawed" and "provided insufficient challenge" to RBS.
And it says RBS had too weak a capital position to proceed with the takeover of parts of the Dutch bank ABN Amro.
The £49bn purchase took place at the height of the financial crisis in 2007.
Job losses
BBC business editor Robert Peston said: "The costs of the debacle have been enormous.
"Taxpayers had to rescue the bank by injecting £45.5bn into the bank - and are currently sitting on a loss of more than £25bn on this investment."
He added that "although the FSA concedes that the regulation and supervision of banks was 'deficient' and 'flawed', these shortcomings were not negligence".
Read more: BBC
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