RBS Chief Warns That UK Slump Could Last For 15 Months
Sir Fred Goodwin, the chief executive of Royal Bank of Scotland (RBS), has suggested that the UK economy may suffer for at least another 15 months before we see any sign of improvement. Sir Goodwin’s comments have not gone down particularly well in the City, just days after the Group secured a £12 billion rights issue to increase the financial strength of the bank.
There are many analysts that believe he should have been a little more forthright in his opinion of the economy prior to the rights issue offer closing, rather than waiting until the funds had been secured before giving his opinion on the economy. While in all honesty his comments are not out of line with those of many economists, some feel this rather downbeat assessment is a little more damming than that contained within the fund raising literature.
Sir Goodwin also confirmed that RBS will be tightening the criteria which it uses to confirm and approve customer loans, suggesting that this new regime may last between 12 and 15 months. While there is no doubt the assessment by Sir Goodwin is honest and inline with many experts, it does not help those who took up their rights issue shares in the short term.
Share this..
Related stories
Are there cracks in the UK postal strike?
Only 24 hours ago the Communication Workers Union was suggesting a significant increase in the number of strikes between now and Christmas if an agreement could not be reached with the Royal Mail management. However, today the union leaders have expressed a wish to find a resolution to the problem in the short term and thus avoid potentially disastrous strike action between now and Christmas. So w...
Read MoreWill Barclays Bank be the next to insure its toxic assets?
As the news continues to sink in regarding Lloyds TSB and a £260 billion deal to insure toxic assets from the merged Lloyds Bank/HBOS it would appear that Barclays Bank could be next in line. The company is rumoured to have organised talks with the Treasury for this week during which the company may well look to significantly reduced its liabilities regarding toxic assets. The city was surprised...
Read MoreWill the UK lose its place in the worldwide pecking order?
For a fairly small country the UK has always seemed to punch above its weight in the worldwide financial sector and international relations. However, as the economy continues to fall at an alarming rate and more and more taxpayer's money is poured back into the system there are concerns in some quarters that the UK's presence and strength on the international scene could be under pressure.
...
Is the UK government about to be embarrassed over the Icelandic affair?
Amid claims that the government were aware of problems in Iceland prior to the collapse of the country's financial sector there are growing calls for a thorough investigation into the collapse where confirmation about what the government did and did not know would be requested. As we discussed yesterday there are claims that Gordon Brown knew about problems as far back as March 2008 although no ac...
Read MoreGordon Brown urges banks to confirm losses
In a move which is sure to cause yet more friction between the government, UK banks and taxpayers Gordon Brown has come forward to suggest that the UK banking sector should be more forthright with confirmation of losses. If the government is aware that losses are being "hidden" or not disclosed in a forthright manner then why on earth have they already invested billions upon billions into the sect...
Read More