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Are we to take on RBS bad debts?
Graham_Devon
Posts: 58,560 Forumite
Sounds much like Northern Rock.Bank of England Governor Sir Mervyn King has said there is a case for splitting up Royal Bank of Scotland.
He told the Banking Standards Commission that there was a "good bank, bad bank" within bailed-out RBS.
The healthy arm, separated from the problem assets in the rest of the bank, would be capable of attracting funding to lend to the UK economy.
He said the arguments for restructuring RBS "sooner rather than later are powerful ones".
Sir Mervyn said: "The whole idea of a bank being 82%-owned by the taxpayer, run at arms' length from the government, is a nonsense. It cannot make any sense.
Are we about to allow RBS to shelve it's bad debts onto the taxpayer?
http://www.bbc.co.uk/news/business-21684262
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Comments
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I like the idea of giving all taxpayers shares in RBS.0
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Graham, we already have all the bad debts, remember we own 84% of RBS.
Infact it makes utter sense for banks to reorganize and separate the "god" and "bad" bits of their operations. Part of the reason they aren't lending at the moment is because they do not know how much bad stuff they have on their books.0 -
Yes, we already own the bad debts
The idea here is to sell off the good one's'In nature, there are neither rewards nor punishments - there are Consequences.'0 -
Yes, we already own the bad debts
The idea here is to sell off the good one's
Will the net position improve by a sell off or will it just allow the position to be crystallised?
How much of the bad is actually bad, aren't recoveries being made allowing lattitude?
Would it allow BOE base rate to rise for good business giving them one of their levers back?"If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
Anyone know what a break up might mean for small shareholders / share values?0
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Anyone know what a break up might mean for small shareholders / share values?
Suspect that by the time RBS restructuring is complete it will a shadow of its former self. Once the largest bank by market capitalisation in the world.
RBS current has a value of around £19 billion.
Somewhat dwarfed by the now largest bank HSBS at £134 billion.0 -
The Irish are restructuring their banks by taking moving all the toxic issues into a "bad bank". Then running it down over a period of 30 years.
At least then the extent of the problem is clearly identified. Allowing "good banks" to operate without hindrance in a normal manner.0 -
Thrugelmir wrote: »The Irish are restructuring their banks by taking moving all the toxic issues into a "bad bank". Then running it down over a period of 30 years.
At least then the extent of the problem is clearly identified. Allowing "good banks" to operate without hindrance in a normal manner.
Just have to make sure we aren't going through the whole process every 10 years or so:eek:
Have lessons really been learned for the long term or will the pull of a fast buck take over once more?"If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
grizzly1911 wrote: »Have lessons really been learned for the long term or will the pull of a fast buck take over once more?
Banking has changed. Although public perceptions lag behind reality. Decline in investment banking is terminal.
Fast bucks aren't restricted to banking. Thats human nature.0 -
They wanted to flog off the "good" Bank last night, but their computer system crashed again just as Hester was about to hit the sell button !!!'In nature, there are neither rewards nor punishments - there are Consequences.'0
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