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    • Former MSE Helen
    • By Former MSE Helen 20th Nov 14, 8:28 AM
    • 2,324Posts
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    Former MSE Helen
    MSE News: RBS fined 56m over IT meltdown
    • #1
    • 20th Nov 14, 8:28 AM
    MSE News: RBS fined 56m over IT meltdown 20th Nov 14 at 8:28 AM
    RBS is to pay fines totalling 56 million following an IT meltdown in 2012, which left customers locked out of accounts...

    Read the full story:

    RBS fined 56m over IT meltdown




    Click reply below to discuss. If you havent already, join the forum to reply. If you arent sure how it all works, read our New to Forum? Intro Guide.

Page 1
    • chanz4
    • By chanz4 20th Nov 14, 10:21 AM
    • 10,018 Posts
    • 2,981 Thanks
    chanz4
    • #2
    • 20th Nov 14, 10:21 AM
    • #2
    • 20th Nov 14, 10:21 AM
    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
    • By Aquamania 20th Nov 14, 11:02 AM
    • 2,019 Posts
    • 821 Thanks
    Aquamania
    • #3
    • 20th Nov 14, 11:02 AM
    • #3
    • 20th Nov 14, 11:02 AM
    who owns rbs?
    Originally posted by chanz4
    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
    • By agrinnall 20th Nov 14, 11:38 AM
    • 22,649 Posts
    • 18,634 Thanks
    agrinnall
    • #4
    • 20th Nov 14, 11:38 AM
    • #4
    • 20th Nov 14, 11:38 AM
    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?
    Originally posted by Aquamania
    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 fritter uselessly away distribute as they see fit.
    • agrinnall
    • By agrinnall 20th Nov 14, 11:40 AM
    • 22,649 Posts
    • 18,634 Thanks
    agrinnall
    • #5
    • 20th Nov 14, 11:40 AM
    • #5
    • 20th Nov 14, 11:40 AM
    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
    • By eskbanker 20th Nov 14, 11:45 AM
    • 10,154 Posts
    • 12,264 Thanks
    eskbanker
    • #6
    • 20th Nov 14, 11:45 AM
    • #6
    • 20th Nov 14, 11:45 AM
    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.
    Originally posted by agrinnall
    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
    • By stclair 20th Nov 14, 3:14 PM
    • 6,521 Posts
    • 3,459 Thanks
    stclair
    • #7
    • 20th Nov 14, 3:14 PM
    • #7
    • 20th Nov 14, 3:14 PM
    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.
    Originally posted by agrinnall
    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.
    • #8
    • 20th Nov 14, 4:41 PM
    • #8
    • 20th Nov 14, 4:41 PM
    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
    • By agrinnall 20th Nov 14, 6:27 PM
    • 22,649 Posts
    • 18,634 Thanks
    agrinnall
    • #9
    • 20th Nov 14, 6:27 PM
    • #9
    • 20th Nov 14, 6:27 PM
    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
    Originally posted by stclair
    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
    • By pmduk 20th Nov 14, 7:09 PM
    • 10,130 Posts
    • 7,753 Thanks
    pmduk
    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.
    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.
    Originally posted by pmduk
    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.
    • Thrugelmir
    • By Thrugelmir 20th Nov 14, 8:39 PM
    • 63,157 Posts
    • 56,050 Thanks
    Thrugelmir
    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.
    Originally posted by agrinnall
    Under Fred the Shred. RBS invested very little into technology during it's years of expansion. Instead relied on a hotchpotch of patched together legacy systems. Probably a contributory reason behind the banks failure. As the Board had no idea what was actually going on across the empire.
    The stock market is a device for transferring money from the impatient to the patient. Warren Buffett
  • Hanky Panky
    Under Fred the Shred. RBS invested very little into technology during it's years of expansion. Instead relied on a hotchpotch of patched together legacy systems. Probably a contributory reason behind the banks failure. As the Board had no idea what was actually going on across the empire.
    Originally posted by Thrugelmir
    This is the case with every bank out there that's been around for any length of time. Quite simply it would be a massive task and a huge cost to replace all the systems within any bank and it's just not going to happen. New bits get added, plugged into old bits. Then an acquisition takes place so those systems are bolted on too. This has been happening since the first computerised systems were put in place way back in the 60's or 70's.

    I remember back in 1990 the very small bank I worked for did replace all it's systems - completely. We had the most up to date banking system in the country and it cost us over 20m. For a Barclays or HSBC to do that would have cost 100's of millions all that time ago.
    • Ken68
    • By Ken68 22nd Nov 14, 1:41 PM
    • 6,497 Posts
    • 4,139 Thanks
    Ken68
    Overkill, it means that customers/taxpayers pick up the tab.
    Sounds like a deal has been struck, the banks let the government fine as they see fit, as long as no bankers go to jail.
    • Thrugelmir
    • By Thrugelmir 22nd Nov 14, 7:40 PM
    • 63,157 Posts
    • 56,050 Thanks
    Thrugelmir
    This is the case with every bank out there that's been around for any length of time.
    Originally posted by Hanky Panky
    RBS did go grow from a tin pot Scottish entity to the largest bank in the world in the space of 15 years. So not just a UK based operation. You can't operate and run a bank with a 2 trillion balance sheet without accurate and up to date information.
    The stock market is a device for transferring money from the impatient to the patient. Warren Buffett
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