More Trouble For NatWorst
Just when you thought, the constituent banks of the Royal Bank of UK Taxpayers might be getting a bit better, this story comes along.
The jewellery may only be worth £20,000 or so, but would you trust NatWorst with anything of value?
I wouldn’t! But then I have nothing of value, that I would miss!
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 Royal Bank Of UK Taxpayers Posts Another Big Loss
Gordon Brown’s folly of rescuing Scotland’s failed bank is now becoming more than a millstone around the neck of everybody in the UK.
So the loss of £5.2 billion, works out at nearly £67 each for every man, woman and child in the UK.
I think I’d have had more fun taking a few notes and setting fire to them in a branch of the Royal Bank of UK Taxpayers.
It would be a lovely way to get arrested!
Seriously though, the bank is the deadest of dead parrots and keeping it alive is a fraud on the UK Taxpayers and most of those that appear to work for the bank. If it had been a manufacturing company or a retailer, it would have been liquidated years ago!
The Mess That Is RBS
Just reading this article from the Guardian shows the mess the wunch of bankers at RBS got themselves into. Here’s an extract.
Clear thinking and firm principles are Royal Bank of Scotland’s best defence as it tries to negotiate its Libor fine, which could end in UK taxpayers, in effect, dispatching £400m to American taxpayers. But, in the case of Hourican’s exit, it’s hard to know what point RBS is trying to make. On the one hand Hourican’s head (we are led to believe) will be offered up in acknowledgement of the seriousness of the Libor penalty. On the other hand RBS is likely to undermine the force of this resignation by saying that Hourican would have departed anyway because his investment banking unit is to be split in two with the new heads of each section – markets and international – reporting directly to the chief executive, Stephen Hester. Since there’s no suggestion that Hourican knew about attempted Libor manipulation in the ranks, he will keep the bonuses he earned in past years.
The Guardian says it’s a muddle and if everybody in these Isles have to give a few quid to American taxpayers, how about we all sue Prudence, who to protect his Scottish majority, didn’t do the humane thing with RBS and liquidate it. I feel slightly sorry for Mr. Hourican, as I suspect, he’ll suffer badly at the hands of the tabloids, although it would appear he’s done nothing wrong.
Why Are UK Taxpayers Sponsoring Six Nations Rugby?
I very much object to the state-owned zombie bank, sponsoring the Six Nations Rugby. After all, if as a stakeholder in the bank, I wanted a ticket, I wouldn’t be able to get one.
Is It The Time To Put RBS Down?
RBS looks like it will be facing large fines from both the UK and US authorities according to this report on the BBC web site. The report starts with this paragraph.
Any fines by US authorities on Royal Bank of Scotland over the Libor scandal should be met by bankers not taxpayers, Chancellor George Osborne has insisted.
But even if it finds this the money to pay the fine from bankers bonuses, the saga of this worthless company just goes on. They still don’t seem to have managed to get rid of the 316 branches, that they tried to offload to Santander.
If the bank were to be put into administration, customers would do the thing, that they should be doing now and that is move their accounts to another bank.
I do wonder how many people still bank with RBS or its subsidiaries?
At the moment the bank is just a zombie, whose only use for most of us is to get cash out of their cash machines.
Would anybody except the employees miss it, if it was put down? I doubt it. But I suspect most of the good employees have already left the bank.
Zopa Hits A Quarter Of A Billion
Zopa are reporting on their web site, that they have now lent out over a quarter of a billion pounds. That may seem a lot of money, but consider that ING have pulled four times that amount out of lending in the UK in this year alone. But every little helps.
You can make an estimate of Zopa’s income, by starting with one per cent charged on all loans. So that looks like £2,500,000. And to that you can add about a £100 for each successful loan.
But this is probably a lot less than Barclays or another big bank, would make by lending a quarter of a billion.
So possibly Zopa is really only an irritant in the hide of the big banks.
On the other hand, Zopa is a company that lives without the cost structure that any bank feels it must have.
So if they ignore Zopa, the banks will live to regret it. But they won’t live very long in their current bloated and top-heavy forms.
The reason is simple. Zopa’s financial model appeals to both lenders and borrowers and is very simple. So all the discontent, that many feel about the banks, has found a home.
My only worry about Zopa is that politicians legislate against social lending to protect their shareholdings in LloydsTSB and RBS.
Is This The Truth About the RBS Problems?
The Register also has an article, where it claims a source has told them what happened at RBS and NatWorst. This is an extract.
A serious error committed by an “inexperienced operative” caused the IT meltdown which crippled the RBS banks last week, a source familiar with the matter has told The Register. Job adverts show that at least some of the team responsible for the blunder were recruited earlier this year in India following IT job cuts at RBS in the UK.
The problem isn’t in India, it’s with what haggis-head or collection thereof that decided on the risky strategy. And were they appointed by Fred Goodwin or one of his arse-lickers?
I hope that if you read the article in The Register, you’ll take the only sane action and move to another bank, as soon as RBS or NAtWorst have paid you the compensation, you think you deserve.
The Return of NatWorst
Some years ago, I used to do the programming and processing for a company called PressWatch, that rated the coverage of major companies in the UK printed media.
Some time before I programmed the system, NatWest had a string of bottom places and were labelled NatWorst by some financial journalists.
It would appear from its current computer problems, that along with other banks in the RBS Group, it is attempting to claim the bottom place again. Read about it here.
The article says it is a computer glitch. I would describe it as a computer disaster.
A computer glitch is what I’ve just suffered from Nationwide. They said my credit card statement would be ready online on Wednesday. It didn’t arrive until today. But at least, it didn’t cost me any money, although I did worry, that there might have been some illegal transactions, they were sorting out. Especially, as it’s the VISA card, I use for Olympic tickets. But all is now fine.
The Anonymous Widower 