Don’t be fooled by the results / spin / headlines coming out about RBS at the moment.
The news that excited the gullible, was that RBS are close to repaying all of the money that it borrowed from us in loans (circa £75 billion). Commendable, but only half the story.
RBS is carrying a huge value of bad debt that could turn sour and force more write offs, is not profitable and there is the small matter of the £45.5 billion we taxpayers ‘invested’ in a 81% stake of the company shares (which we have received no dividend and stand to make a significant loss when considering the current share price).
Perhaps the headlines should have read, ‘We’re Still In A Mess – It’s Just Not As Big As It Was’.
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