More massive losses at Royal Bank of Scotland

[rooster59]

More massive losses at Royal Bank of Scotland

 

 

Royal Bank of Scotland has sunk deeper into the red and said it is likely to take even longer than expected to return to profit.

 

RBS reported 2.05 billion pounds of losses (2.4 billion euros) for the first half of this year; much worse than the 179 million pounds loss for the same period last year.

 

The bank – Britain’s third biggest – is 72 percent government-owned after a massive taxpayer bail-out in 2008.

 

Chief Executive Ross McEwan is battling to complete a vast restructuring, including major asset sales, job cuts and multi-billion dollar charges to settle litigation and pay regulatory fines for past misconduct.

 

Among its many problems, RBS is facing extremely large fines for its mis-selling of US mortgage linked bonds in the run up to the financial crisis.

 

“There is more work to be done but we are making progress,” McEwan said.

 

RBS shares, which have fallen almost 40 percent so far this year, finished the day down a further 4.3 percent on Friday.

 

 

-- © Copyright Euronews 2016-08-06

[clockman]

And no banker is in jail! They are just loan sharks, in suits. Only Iceland has jailed bankers?

[bkk_mike]

1 hour ago, clockman said:

And no banker is in jail! They are just loan sharks, in suits. Only Iceland has jailed bankers?

 

There were 4 Barclays bankers jailed last month.

Jay Merchant, Peter Johnson, Jonathan Mathew and Alex Pabon.

 

And that's after Tom Hayes of UBS was jailed last year.

Edited August 6, 2016 by bkk_mike
Added more info

[Rancid]

I hope this doesn't affect bonuses.

[bkkcanuck8]

Quote

RBS reported 2.05 billion pounds of losses (2.4 billion euros) for the first half of this year;

 

Why are your banks still hemorrhaging?  I thought they were recapitalized during the nationalization /  bailout.... 

 

Canadian banking market place is a fraction of the size and yet the banks are still making a profit of around 1.1B to 2.7B (GBP) during for the same period.  Mind you the Canadian banking regulations and culture tend to be more conservative -- just because any of the big 5 banks flopping would effectively kill Canada economically...    I personally think the banking regulations should force banks to become more conservative the larger they are (variable regulations depending on size); and/or more risky areas of the business (that would require a bailout) be separated from the more conservative side that cannot be allowed to fail. 

[MobileContent]

RBS, Deutsche Bask and what other banks seem to have problem. I guess it will be a bad year for many European banks.

[billd766]

1 hour ago, MobileContent said:

RBS, Deutsche Bask and what other banks seem to have problem. I guess it will be a bad year for many European banks.

 

It won't do the EU or the UK much good and if they do fail the knock on effects will be felt worldwide and not in a good way either.

 

What do I know anyway? I am not a financial guru but I have been declared in other posts ad an ignorant, unwashed peasant who knows nothing about the world of finance.

 

If that is true then it doesn't say much for a great numbers of bankers does it?

 

At least I haven't been able to lose over £2 billion pounds of other peoples money, brought down a bank (Nick Leeson at Barings bank) or Kweku Adoboli who lost over $2 billion of the USB Switzerland's money.

[lungmi]

British Banks have the general problems of Eurepean Banks + the consequences of the Brexit.

Retrograde British proudnes: "We can piss against the wind."

Next step:" Oh, our trousers are wet. Never mind, we drink some pitchers of beer and our

piss will be stronger"

 

[how241]

Just like in the casino,  sometimes you lose.

[smedly]

absolute disgrace and they are still giving themselves hefty bonuses every year and on huge salaries.

 

This bank should have been broken up not bailed out, sell off the debt and shaft the bondholders who took the risk then split the rest into banks that actually function correctly (if there is such a thing)

[Basil B]

Well if Scotland ever gets independence they can have it back...

[RuamRudy]

9 minutes ago, Basil B said:

Well if Scotland ever gets independence they can have it back...

 

No, you can keep it - it was pretty shoddy when it was brought down south but London has gutted it; we don't want it back.

[jippytum]

Yes and the Scots want independence. Who will bail them out next time ?????

[RuamRudy]

2 minutes ago, jippytum said:

Yes and the Scots want independence. Who will bail them out next time ?????

 

A UK bank was bailed out by a UK government using UK money. It certainly wasn't you bailing out us, although I can understand why you might think that - such an attitude is a common fault amongst some of our southern countrymen.

In an independent Scotland, I hope that our government will be more economically responsible than Westminster, and will ensure more stringent banking regulations.

[elgordo38]

All the banks around the world are in trouble. Italy is in the forefront. Deutsche bank is in trouble with these low to negative interest rates they cannot make any money and besides governments are finally getting off of their derriere and coming down hard on them for all the chicanery they have been involved in over the years. My advice is to join the stock market brigade and prop up the markets so these darlings of free enterprise can survive to rape us another day. The banks learning curve has been replaced by raw and naked GREED!! 2008 is playing itself out all over again. The banks are doing the usual getting rid of honest employees who had nothing to do with the mess they are in. CEO'S however will continue to accept their elephantine pay checks and bonuses while their poor employees will visit the food banks. Just be careful that when the music stops that you can find a chair to sit on. 

[OMGImInPattaya]

And these people want independence...they can't even run a bank  

[Basil B]

2 hours ago, OMGImInPattaya said:

And these people want independence...they can't even run a bank  

 

They could not run a piss up in a brewery distillery up their... 

[RuamRudy]

29 minutes ago, Basil B said:

 

They could not run a piss up in a brewery distillery up their... 

 

Up their what?

[ozyjon]

 

[Pockys]

 

It won't do the EU or the UK much good and if they do fail the knock on effects will be felt worldwide and not in a good way either.

 

What do I know anyway? I am not a financial guru but I have been declared in other posts ad an ignorant, unwashed peasant who knows nothing about the world of finance.

 

If that is true then it doesn't say much for a great numbers of bankers does it?

 

At least I haven't been able to lose over £2 billion pounds of other peoples money, brought down a bank (Nick Leeson at Barings bank) or Kweku Adoboli who lost over $2 billion of the USB Switzerland's money.

Bankers are unwashed?

[tomwct]

• No wonder the Scots wanted to stay with the EU! I wonder if the EU or the Brits will bail them out again?

[landtrout]

   A little sympathy and support from one of your banker-afflicted cousins across the pond.

      "No Banker Left Behind"

 

 

[RuamRudy]

43 minutes ago, tomwct said:

• No wonder the Scots wanted to stay with the EU! I wonder if the EU or the Brits will bail them out again?

 

Here's some news for you, pal - Scots are Brits (unfortunately).

[Basil B]

Yes, unfortunately... 

[dunroaming]

RBS has been in trouble many times.  It is now owned by the UK taxpayer after the bailout.  The latest figures show to some extent the consequence of brexit.  All British banks are showing a drop in profits or posting losses, hence the BOE stepping in this week.  Nissan have announced that they cannot guarantee the future of their Sunderland plant until they know what agreement can be reached with the EU on movement of trade.  These are nervous times and the banks are feeling the pressure

[OMGImInPattaya]

7 hours ago, dunroaming said:

RBS has been in trouble many times.  It is now owned by the UK taxpayer after the bailout.  The latest figures show to some extent the consequence of brexit.  All British banks are showing a drop in profits or posting losses, hence the BOE stepping in this week.  Nissan have announced that they cannot guarantee the future of their Sunderland plant until they know what agreement can be reached with the EU on movement of trade.  These are nervous times and the banks are feeling the pressure

Yes, the increased numbers of homeless banksters to be found in The City and Wall Street is a national disgrace ???

[bkkcanuck8]

8 hours ago, dunroaming said:

RBS has been in trouble many times.  It is now owned by the UK taxpayer after the bailout.  The latest figures show to some extent the consequence of brexit.  All British banks are showing a drop in profits or posting losses, hence the BOE stepping in this week.  Nissan have announced that they cannot guarantee the future of their Sunderland plant until they know what agreement can be reached with the EU on movement of trade.  These are nervous times and the banks are feeling the pressure

It is too early for brexit to have resulted in a significant drop in profits or posting losses (at least not directly) IMHO.  (not that I don't think that there will be a cost, but attributing a sudden change in fortunes to brexit at this point for the banks.... not likely).  RBS has warned that brexit "could" hit the bank (forward looking warning).

Edited August 7, 2016 by bkkcanuck8

[SgtRock]

8 hours ago, dunroaming said:

RBS has been in trouble many times.  It is now owned by the UK taxpayer after the bailout.  The latest figures show to some extent the consequence of brexit.  All British banks are showing a drop in profits or posting losses, hence the BOE stepping in this week.  Nissan have announced that they cannot guarantee the future of their Sunderland plant until they know what agreement can be reached with the EU on movement of trade.  These are nervous times and the banks are feeling the pressure

 

RBS's trouble is nothing to do with Brexit.

 

It is the result of fines for dodgy banking practices going back almost a decade.

 

Jesus H Christ, I just had a dose of the skitters, was that to do with Brexit or the curry I had last night ?

[Grouse]

49 minutes ago, bkkcanuck8 said:

It is too early for brexit to have resulted in a significant drop in profits or posting losses (at least not directly) IMHO.  (not that I don't think that there will be a cost, but attributing a sudden change in fortunes to brexit at this point for the banks.... not likely).  RBS has warned that brexit "could" hit the bank (forward looking warning).

 

Of course Brexit the fact is having serious consequences now:

 

pound dropping

 

interest rate cut by 50%

 

lack of confidence

 

Inward investment delayed

 

I did not vote for this

 

"suck it up Brexiteers" to coin a phrase

 

[cooked]

8 hours ago, dunroaming said:

RBS has been in trouble many times.  It is now owned by the UK taxpayer after the bailout.  The latest figures show to some extent the consequence of brexit.  All British banks are showing a drop in profits or posting losses, hence the BOE stepping in this week.  Nissan have announced that they cannot guarantee the future of their Sunderland plant until they know what agreement can be reached with the EU on movement of trade.  These are nervous times and the banks are feeling the pressure

Agreed. Just replace the phrase 'All British banks' with 'All European banks', and stop blaming Brexit for everything.