MSE News: RBS fined £56m over IT meltdown

Former_MSE_Helen
Former_MSE_Helen Posts: 2,382 Forumite
in Budgeting & bank accounts
RBS is to pay fines totalling £56 million following an IT meltdown in 2012, which left customers locked out of accounts...
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RBS fined £56m over IT meltdown

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  • chanz4
    chanz4 Posts: 10,892 Forumite
    First Anniversary Name Dropper First Post Xmas Saver!
    who owns rbs?
    Don't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.
  • Aquamania
    Aquamania Posts: 2,112 Forumite
    chanz4 wrote: »
    who owns rbs?

    I think it's about 80% owned by us isn't it?

    I make that probably about £1 each we've all been fined.

    Where does the £56million go?
  • agrinnall
    agrinnall Posts: 23,344 Forumite
    First Post Combo Breaker
    Aquamania wrote: »
    I think it's about 80% owned by us isn't it?

    I make that probably about £1 each we've all been fined.

    Where does the £56million go?

    On the TV this morning the FCA Director of Enforcement said that after deduction of certain costs the money goes to the Treasury for them to [STRIKE]fritter uselessly away[/STRIKE] distribute as they see fit.
  • agrinnall
    agrinnall Posts: 23,344 Forumite
    First Post Combo Breaker
    I'd still like to see the report on what happened, which as an owner of RBS both as a taxpayer and an existing shareholder I think I should be entitled to.
  • eskbanker
    eskbanker Posts: 30,979 Forumite
    First Anniversary Name Dropper Photogenic First Post
    agrinnall wrote: »
    I'd still like to see the report on what happened, which as an owner of RBS both as a taxpayer and an existing shareholder I think I should be entitled to.
    I think you're half right! As an actual shareholder then yes, you should be entitled to corporate information, but the notion that all taxpayers 'own' or have some meaningful direct stake in the company is something of a fallacy in my humble opinion....
  • stclair
    stclair Posts: 6,844 Forumite
    Name Dropper First Anniversary First Post
    agrinnall wrote: »
    I'd still like to see the report on what happened, which as an owner of RBS both as a taxpayer and an existing shareholder I think I should be entitled to.

    You may get some information you require from the reports included within this media coverage:

    http://www.rbs.com/news/2014/11/rbs-reaches-it-incident-settlement.html
    Im an ex employee RBS Group
    However Any Opinion Given On MSE Is Strictly My Own
  • James_B.
    James_B. Posts: 404 Forumite
    I think that this one is ludicrous. They messed up, they were made to look foolish, they would have been required to compensate any customers disadvantaged, and they will have made as sure as they possibly can that they've fixed the issue so that it can't happen again, so what is the fine supposed to do?

    As my wife asked this morning, Sainsbury's tills were down last week when she went to buy lunch, so why would we not expect that they be fined for a similar technological issue? Yes, it was smaller scale, but had it been nationwide, we'd still not expect a fine. We'd assume that the reputational damage was enough punishment for what was a mistake, not a decision to stuff the customers.
  • agrinnall
    agrinnall Posts: 23,344 Forumite
    First Post Combo Breaker
    stclair wrote: »
    You may get some information you require from the reports included within this media coverage:

    http://www.rbs.com/news/2014/11/rbs-reaches-it-incident-settlement.html

    Thanks for that, it does provide a bit more hard information than I'd seen previously, and confirms a few of the rumours, although it's still a bit vague on the actual cause of the backout failure. The mirror bank seems like a good move although if it ever has to be used I can imagine there will be rather a lot of buttock clenching until it's proved itself.
  • pmduk
    pmduk Posts: 10,655 Forumite
    First Anniversary Name Dropper First Post Combo Breaker
    The only justifiable reason for the fine is to provide a warning shot across the bows of any other banking groups looking to save money by scrimping on IT. That said, I'm not convinced it was necessary, other than to provide Osborne with more funds to give away to the rich.
  • James_B.
    James_B. Posts: 404 Forumite
    pmduk wrote: »
    The only justifiable reason for the fine is to provide a warning shot across the bows of any other banking groups looking to save money by scrimping on IT. That said, I'm not convinced it was necessary, other than to provide Osborne with more funds to give away to the rich.

    I'm probably at the level that many would consider rich, but he's not giving any money to me. It's quite the opposite, I'm paying 47% tax on over 80% of everything I earn, which is higher than at all but the last few months of the Labour government.
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