The Royal Bank of Scotland (RBS) reported a £5.2 billion loss as it announced its annual results today The bank’s boss Stephen Hester is four years into his original five-year plan to bring RBS back on track – yet things don’t seem to be getting much better for the publicly owned bank. RBS blames a year of heavy fines. But let’s just remind ourselves of what these fines were:
PPI: The bank knowingly mis-sold its customers insurance which they neither needed nor could use, over a period of years. Fine: £2.2 billion
Libor: The bank illegally manipulated a crucial interest rate to benefit itself whilst negatively affecting mortgage payers in the UK (and elsewhere). Fine: £391 million
Oily bankers: Protest at RBS's 2011 AGM in Edinburgh
Bankers this year have been rewarded for doing a ‘good job’. Bonus pot: £600,000 million
Some pretty significant figures that the bank should never have been in a position to pay.
If the RBS was really making headway to being sustainable and acting in the interest...