Hmmm, here's a report that no doubt cost a fortune and the end results could have been predicted by my granny.
"Royal Bank of Scotland nearly collapsed in 2008 because of poor management decisions, inadequate regulation and a flawed supervisory system..."
BBC business editor Robert Peston said: "The costs of the debacle have been enormous.
"Taxpayers had to rescue the bank by injecting
Must admit I made a few crap decisions over the last couple of years, mainly down to the collapse of the construction industry, main contractors folding etc. No one injected money into my business, in fact everyone wanted money out of it and boy did they make sure they got it. It got so bad we got down to having only Thanks, Barney
A turn around like that of losing 1.6billion 1 year to 2billion profit the next is surely great, of course... but at that rate it's going to take them 25 years solid of the same thing to make that money injection worth while. 
“Wages have been kept realistic and we've taken over
One person not being blamed by the report is David Bowie!!! RBS grew very quickly during the noughties, and to keep growth levels high, Fred The Shred ordered his his staff to mass buy mortgage derivatives (I think that is what they are called) from wherever. These included US sub-prime mortgages which started to fail in the mid noughties. That is where David Bowie comes in. He came up with the great idea of selling the royalties of his back catalogue for 10 years for around Thanks, Truemanbrown
“...The total royalties over that period was around
Subprime lenders were giving bad borrowers double what the house they were gonna buy was worth, just to create a lot of mortgages for wall street to 'repackage'. The lenders didn't lose any money since the loans were sold onto investors. Wall street and investors were left holding the bags when the market collapsed. You gotta be an idiot to buy a loan issued to someone who can't repay it, secured on a house worth less than the loan. BoBo_184
It's a lesson for us all: You can be too big to be allowed to fail. Personally, I think Western countries have screwed up propping up bad banks. Countries have taken on their debts and thus are hoping they can keep the show on the road until the markets improve. Not the greatest strategy. Plus our grandchildren will be paying off these debts. Very bad. Reg Addking
it all started with bad residential loans and mortgages... then commercial loans started to go bad as economy tanked and shops went out of business... next to go bad will be sovereign debts BoBo_184
Actually, it's Bill Clinton's fault. His administration pushed mortgages for poor people. Insane, in hindsight. All the dud paper was built on that. It would be very good long term if the ar*e was kicked out of the housing market. People are putting too much money into a basic good. They should be investing it in businesses. Reg Addking |
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