Hypothecate » RBS http://www.hypothecate.co.uk Random Postings & Observations Thu, 02 Sep 2010 04:13:50 +0000 http://wordpress.org/?v=2.9.1 en hourly 1 RBS exec’s blame politicians for their bonus problems http://www.hypothecate.co.uk/odd-logic/rbs-exec%e2%80%99s-blame-politicians-for-their-bonus-problems/ http://www.hypothecate.co.uk/odd-logic/rbs-exec%e2%80%99s-blame-politicians-for-their-bonus-problems/#comments Wed, 16 Dec 2009 06:37:28 +0000 admin http://www.hypothecate.co.uk/?p=19 The Royal Bank of Scotland has decided to attack regulators and politicians who they believe have a hand in destroying the banks share value, which they estimate to be around £15b. The irony is that on the same day they launched the attack, investors of the bank signed up to be bailed out by [...]]]> Trbshe Royal Bank of Scotland has decided to attack regulators and politicians who they believe have a hand in destroying the banks share value, which they estimate to be around £15b. The irony is that on the same day they launched the attack, investors of the bank signed up to be bailed out by the government.

RBS Chief Executive Stephen Hester said that the share price of the bank slid as a result of political meddling.

Hester also said that Labour is at fault for trying to run the RSB internal affairs and issued a warning that the governments forceful curbed bonuses and the EU’s disposals has led to the loss of taxpayers’ money.
Additionally he stated that RBS has been very clear and public about how politicizing the institution has damaged the bank.

Three months ago the share price of RBS was at 50p versus now, which Hester claims has been reduced by about 40%.

Due to the fact that the bank did not have any other options but to take the bailouts from the government, shareholders were forced to agree to lending terms that gave the government control over certain factors of the way RBS is run.

This seems to mean that the bank considers that the bigger mess they are in, the more money they loose, the worse the value of the company, the more the top exec’s should receive in bonuses as a reward.

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