RBS Loses 5, er 3.6, Billion in 2009

chucky

Generali wrote: »

What are the 5 1/8% flip flop Bermudan callable subordinated notes 2017 doing?

income was close enough to Barclays i think, please tell me if i'm wrong though...

on a revenue front they're fine it's just the hangover they're going to have for quite a while.
this maybe answers the question and why RBS won't be out of the woods for a while
http://www.iii.co.uk/investment/detail/?display=discussion&code=cotn%3ARBS.L&it=le&action=detail&id=5996463

doire_2

Bank makes a loss yet intends to pay is staff a £1.3 billion bonus

Cleaver

doire wrote: »

Bank makes a loss yet intends to pay is staff a £1.3 billion bonus

Hamish and Generali have already pointed out that this situation isn't as clear cut as it sounds.

Just to throw my example in the pot, let's say I'm employed by a company to redesign their website and lead on initiatives to increase online sales. My pay is £40k with a £10k bonus if web hits and sales goes up 10%, or a £20k bonus if they go up by 20%. As a direct result of my work, online hits and sales go up 27%. However, other factors either externally or internally have led to the company making a loss. I would still expect my bonus. I've done what I was asked and would expect the organisation to honour my contract, and if the organisation doesn't pay the bonus, what happens? Someone who now has a track record for improving online sales leaves to go to another organisation.

I fully agree that there are moral issues at stake here around taxpayers money being used to prop up a commercial organisation. But we are where we are: the government chose to take over a bank. Banks work on bonuses, and this doesn't change overnight, due to cultural reasons and, more simply, because of what is written in people's contracts.

wolvoman

kabayiri wrote: »

.... and an agreement of no bonus until the company was in profit. These people are lucky to have a job.

So you think a bank can be profitable without paying any bonuses?

Can you name one? Either in the UK or anywhere in the world?

Indeed can you name ANY company that is in profit that does not pay ANY bonuses?

Hmmmm.... thought not.