Rbs

Tuesday

Peter Hoskin

Why our national debt went up by £1,300 billion today

It’s not just the growth figures, you know. Today, the Office for National Statistics also released its latest estimates for the state of the public finances. Among the headline findings was a crumb of consolation for the Treasury: it is on track to meet its borrowing target for the financial year. But that’s by the by when compared to this other snippet from the ONS release: our national debt went up by £1,300 billion in December. Don’t worry, though – it’s not really as terrible as all that sounds. What’s happened is that the human calculators have finally worked out how to account for Lloyds and RBS on the public

Thursday

David Blackburn

God stand up for bankers

He’ll have to because nobody else will. As Robert Peston says ‘Poor RBS, poor Britain’ – today’s figures are catastrophic. Peston’s been digging and the news gets worse: ‘But perhaps the most chilling numbers are these: we as taxpayers put in £25.5bn of new equity into this bank last autumn, the second instalment of the £45.5bn we have invested in total; but over the past year, the equity of this bank has increased by less than £16bn to £80bn. So almost £10bn of the £25.5bn we’ve only just put into RBS has already been wiped out by losses. Which, I think, is probably the best measure of the degree to

Peter Hoskin

Back with a vengeance | 25 February 2010

All of a sudden, the Big Banks are Big Politics again.  And who’d have it any other way, on the day that the 84 percent taxpayer-owned RBS announced losses for 2009 of £3.6 billion?  And that’s alongside a bonus pool for its staff of £1.3 billion.  Yep – however hard they try, the exorcists of Westminster just can’t shift the ghost of Fred the Shred. In which case, there’ll be plenty about bankers’ pay, and about getting taxpayers what’s owed to them, over the next few days.  And rightly so.  But I often feel that these issues detract from even bigger ones, such as how to ensure that there aren’t

Tuesday

Mark Bathgate

The bills just keep coming in

Two years after Northern Rock became the first bank failure of this crisis, another £30 billion of taxpayers’ money needs to be thrown at the banking system. Behind all the noise about improving competition and the European Commission lies one core fact: the UK banks have lost an astonishing sum of money. The above chart shows bank losses as a percentage share of GDP, and illustrates the scale of the crisis that has overwhelmed the banking system and the taxpayer. The IMF estimates that losses could be as high as 25% of UK GDP.   UK banks went on an orgy of lending around the world, becoming the biggest source

David Blackburn

Next step for banks provides further vindication of Osborne

Alistair Darling has unveiled the initial phase of his plan to get the majority state owned banks back into private ownership. RBS and Lloyds will dispose of more than 918 retail branches across the country over the next four years and will receive up to £40bn of taxpayer funds to strengthen their capital bases. In exchange for this injection, both banks have deferred cash bonuses for 2009. Also, Lloyds will not join the government’s asset protection scheme by securing £13.5bn privately through a rights issue. There is an argument that the government should have gone further and demanded the complete separation of retail and investment arms, followed by additional demergers,

Sunday

Alex Massie

Barclays vs RBS: A Tale of Luck and Greed

At the end of the Peter Oborne column James linked to yesterday, Peter writes: I believe that one genuine hero has emerged from the collapse of the British banking system. He is John Varley, the Barclays chief executive who this week proudly announced that his bank would not be taking government money to stay afloat. I admire Varley because he has fought hard to keep one of the greatest names in British banking for more than 300 years independent and out of the hands of the State. It is a hard fight and, who knows, he may yet fail. But at least Varley is doing his best. Fair enough. But

Thursday

Martin Bright

The RBS Bailout

A friend has just pointed out this extraordinary quote from The Times article on Fred Goodwin (I have stripped him of his knighthood as the government should). “The handout means that RBS will have received more than £45 billion in public funds, equivalent to a penny on income taxes for more than a decade” I had to read this several times and then kick myself, rub my eyes and then kick myself again. Can we please ensure that Fred Goodwin walks away with no pension as a starting point?