Wednesday, 15 February 2017

Bank Bashing




In amongst the Brexit and Trump hysteria, a little news story got ‘conveniently’ pushed under the mat.
 
If I am being honest, I haven’t been very subtle with my opinion on the banking crisis over the years and in particular, the propping up and rescue that occurred. The biggest target of my efforts has been the Royal Bank of Scotland banking group (which includes Royal Bank of Scotland, NatWest, Ulster Bank and Coutts). So few have been made accountable for poor risk management and yet at the same time there has been widespread acceptance that banks being morally corrupt is somehow the norm and acceptable.  
 
Recent figures from RBS have got me disproportionately excited about all of this……again. Let me show you where I am coming from:
 
  • The banking group is 72% owned by us.
 
  • RBS have posted £5 billion of losses for 2016.
 
  • This is the ninth consecutive year of losses.
 
But here is the big figure for me……
 
  • £370 million was paid out in 2016 in staff bonuses.
 
And for dramatic effect, that’s £370,000,000.00. Which leads me to a question I just can’t get my head around……has £370 million been paid out in bonuses because a loss of £5 billion is considered a ‘good’ result worthy of financial reward?
 
If you just stop and think about that for a moment, it doesn’t make sense on any level and actually compounds the losses. Yet as 72% public owned, why are there no demonstrations taking place? Or do we just accept that owning a loss making bank is very normal?
 
Perhaps only a Trump visit is worthy of demonstration now.

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