Friday, 27 February 2009

RBS - a fiasco

Several pundits and journalists in the UK media have covered in depth the ludicrous position that Her Majesty's taxpayers now find themselves in with respect to RBS. The bank has been granted a sweetheart deal via the Asset Protection Scheme with even more cash to be injected which could take the public interest to 90%+, but because of the issuance of B shares which do not readily convey voting rights, the government is still trying to maintain that the bank is not nationalized and remains in the private sector.
One of the saddest aspects of the whole cock up is the fact that the red top media in the UK is looking at the wrong story. Sir Fred and his egregious pension arrangement is a sideshow compared to the enormity of the possible losses that the current generation of taxpayers, and several other generations to come, could be liable for if the "troubled assets" are even half as toxic as many believe them to be.
One wants to say more about the whole sorry mess but it has a tendency to increase my blood pressure so I shall leave it there.

No comments:

Post a Comment