I’m no financier but….

even I can deduce that a business which haemorrhages money at double the rate it did last year to the tune of 2Bn smackeroonies is most definitely circling the drain.

Mr Osborne on the other hand says that this is a sure sign that the bank is on track. WTF??????????

For said state owned business to then tell us that while losing 2bn of our money it has decided to reward the incompetent dipshits who have squandered said moolah with three quarters of a billion.

Note the slimy bankers speak towards the end too:

“RBS had to set aside £850m to compensate people who bought payment protection insurance they didn’t need.”

Bought insurance they didn’t need? More like were ‘pressurised or just plain tricked into buying’ Mr Banker. I sincerely doubt the courts would have ruled in favour of the borrower had it simply been a case of ‘bought something they didn’t need’. They were actually sold something, often as a condition of lending, which was about as much use as a chocolate firescreen.

Grrrrrrr

11 thoughts on “I’m no financier but….”

  1. Welcome to the wild and woolly world of politics.
    Voltaire wrote in “Candide” “that’s all well and good, but let’s tend to our garden”.
    It was true then, it remains true now.

  2. A fair comment but to just throw figures around is only telling half a story.
    1.25 billion was due to losses incurred by Ulster bank, part of the group, most of the rest is down to Greek debt which is beyond their control, the rest is down to the mis-selling of insurance policies related to mortgages that all banks did and they are now (rightly so) beyond penalised for.

    The average salaries of the banks staff have been cut by some 26%, the bonuses amounts to around less than£3k for average staff and £5k for the investment bankers. not really a great amount, especially for the average bank employee who is on a wage of less then £23 k when they can get £26k on benefits.

  3. Rick, you complete banker. 🙂 They are still getting bonuses, albeit smaller, even when their ‘productivity’ is to lose the taxpayer RBS yet another two BILLION pounds for whatever reason last year. Good job they are no longer still in the private sector or else they’d have all been shown the door long ago.

    OZ

  4. Sipu – I’ll take your view. The Gobmunt won’t let RBS go belly up now and thirty pence seems a reasonable deal – maybe not the lowest it will ever go, but one of my earliest lessons in trading was never to try to spot the absolute top or bottom of any market.

    OZ

  5. Oz, the bank actually made a profit of over 1 billion on its trading for the year. The losses were incurred by their loans to Greece which have gone belly up, the repayment of the mortgage protection insurance and by the bank, under its new management, selling off their toxic debt at any price possible to reduce the banks exposure; which is the right thing to do.

    The British tax payer has not given one penny to the banks in hard cash, the government has underwritten the debt and purchased shares in the bank in the same way as it buys shares in any other company, so yes the government owns a share of the bank and so indirectly we the public own the shares.

    The UK cannot drag itself out of the recession until the banks start becoming profitable and are able to lend money to UK industry once more. We are seeing Germany streaking ahead in manufacturing and growth because their banks are once again making money by employing the best people and paying them, here we are now wanting to pay low salaries to appease the press so are not getting the best people, which is slowing up any form of growth in the UK economy.

    As for salaries and bonuses, how many people out there working work the same hours as bankers, ie on call 24/7 and in the office from 7 am till 8 pm minimum. Any mistake means you are out of work and marked for life. By the time you reach 40 you are redundant. only a handful work in banking beyond 48.

  6. Hmmm. Correct me if I’m wrong, but aren’t you really saying that if it wasn’t for the losses, the bank would have made a profit? I was, for my sins, MD of a commodies trading company and know that in the private sector you’re only as good as your last trade. I retired before they found out about my last trade. 😀

    OZ

    One retired Engineering Director liked this comment.

  7. O Zangado :

    Sipu – I’ll take your view. The Gobmunt won’t let RBS go belly up now and thirty pence seems a reasonable deal – maybe not the lowest it will ever go, but one of my earliest lessons in trading was never to try to spot the absolute top or bottom of any market.

    OZ

    I learned buy at 10% above the low, sell at 10% below the high.

  8. Oz not quite. The Greek debt crisis has spiralled out of control due the dilly dallying of MP’s across Europe, a debt that is well beyond the control of any bank.
    The insurance selling was a scandal at the time and the sellers are paying for it now.

    By removing toxic debt left by the out going regime the new bosses at RBS have managed to make a profit in the retail arm of RBS ( mainly Nat West)but that profit was was wiped out by the investment arm of RBS.

    The current bosses are doing all the right things to make the bank secure again and should be rewarded for their hard work.

  9. No Rick,

    They are paid for their work, it’s called wages.

    Should the company ever repay the substantial debt it owes us, and go on to make a profit then perhaps the board might think about a bonus. A bonus being a reward for performance. A 2 Bn loss is NOT what I would call a result but like the post says I am no financier.

    The different sector thing is a smoke screen. Tesco cannot claim they made a record profit if they don’t count the booze they sell at a loss to get punters in the door.

    Say I borrowed a tenner off you because I was strapped till the end of the month. Then when the end of the month comes along, not only do I not pay you back but I go out and have a night on the pop and a slap up nosh. Are you telling me you would not be ever so slightly peeved?

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