http://www.economist.com/business-finance/displaystory.cfm?story_id=15580696
Bailouts seem to be the biggest trends for banks, due to the nearly world wide recession. The Royal Bank of Scotland is no exception. The bank is still suffering, and reported an "underlying £8 billion ($12.5 billion) pre-tax loss for 2009, bringing its total since 2007 to £16 billion." And with taxpayers owning 70% of the bank, the public is concerned about having their $46 billion investment sitting underwater.
The process to follow is one that mirrors what has occured in some banks in the U.S. A rebuild of trust and assets, and for the Royal Bank of Scotland, a change of leadership. RBS plans to be leaner, and in profit by 2011.
Mr. Hester has taken the helm and is said to be tough and knows exactly what he's doing when it comes to bringing RBS back from the edge.
Banksy
Bailouts here, bailouts there! Bailouts bailouts EVERYWHERE!!!!!
ReplyDeleteBut really, this just doesn't strike me as surprising, as the article mentions, this is happening everywhere.