Public Accounts Committee critical of millions spent on RBS

The Public Accounts Committee (PAC), described as "unacceptable" he Treasury keeping secret money paid in the RBS bailout and that MPs should always be consulted in future, the Telegraph reports.

The PAC called for "effective and enforceable sanctions" to force the RBS and Lloyds Banking Group to meet business lending requirements.

And it warned that without radical reform, the "Treasury risks accepting City bonus practices that are wholly unacceptable in the public sector".

More scrutiny needed

The PAC called for the appointment of a comptroller and an auditor general to the Bank of England and the Financial Services Authority to "scrutinise directly" their actions.

The NAO also found that the Treasury paid £107m of taxpayer cash to City firms for advice during the crisis, including a £200,000 a month retainer to Credit Suisse and Deutsche Bank.