If Lloyds Can Do It Why Can’t RBS?
Lloyds Banking Group’s figures these days as reported by the BBC contrast strongly with those reported yesterday by the Royal Bank of UK Taxpayers.
How can Lloyds make a loss of only £570 million, whereas the state-owned dead parrot loses £5.2 billion?
It strikes me there are three reasons.
The first is the quality of the management in the two banks. I suspect, if you were one of the stars of RBS ten years ago, you have taken the money and ran. so all the bank is probably left with is dross and the world’s best collection of neck-enders.
Secondly, when did you ever here a financial commentator you trust, last recommend that you buy a financial product from RBS. Yesterday, the guy from MoneySaving Expert was recommending which credit card to use abroad. One of Lloyd’s products was mentioned, but RBS were only notable by their absence.
But I also think, that most of their customers, or at least the ones who can have moved their accounts elsewhere. After all, I’d never bank with a state-owned bank and I suspect many others wouldn’t either. You just can’t stop politicians from fiddling! It has been some time, since I’ve noticed anybody with an RBS bank account or credit card. I suspect, the only thing in their favour is that if you want to keep money in a bank deposit account, then RBS is as safe as any, as no government would let you lose your money. But you wouldn’t get paid much interest.
So all of today’s news just says that the sooner we liquidate the Royal Bank of UK Taxpayers, the better for all.
The Anonymous Widower 
Yo need to look a the underlying position ignoring non-recurring income and costs. Then they don’t look so different or so bad. With any luck they r both on the way to having their government share sold off. This will give t government an income boost (non-recurring of course).
Comment by john wright | March 1, 2013 |