RBS Spinning

Whether we like it or not, the Royal Bank of Scotland is a big deal.

 

For starters, it employs 100,000 people directly and no doubt feeds many other families indirectly that supply its many services, departments and branches.

 

Secondly, it is a key player in economic recovery as we are reliant on it to lend to consumers (personal and business) to spend. In a consumer driven economy, giving consumers money to spend is always key!

 

Thirdly, the public own 80% of RBS and we want a return on our investment.

 

Which makes the ‘strategic announcement’ to be made by the RBS chief-executive (Ross McEwan) this Thursday all the more intriguing. If you are charged with making us money, that makes you by definition a big deal in the taxpayer world.  

 

However, when you use Government tactics to manage public perception, it simply leaves some head scratching to be done and suspicion on every level.

 

What do I mean? Well, to limit ‘jolts’ to RBS’s share price, the theme of the announcement has been leaked in time for opening time of investment markets today. Not just the Government that likes to spin!

 

Would it surprise you if I suggested that the RBS board have salary / bonuses linked to the share price in addition to share options where the share price is critical? Sad but true.

 

With RBS to also announce profit / loss for Quarter 4 of 2013 this week as well, expect to be at very best underwhelmed and at worst flabbergasted that there is little prospect of returning a profit to us in the short term.

 

After 5 years since the bailout, should we not be expecting a little more?