Bye, Bye Sir Fred?
As the shareholders of the Royal Bank of Scotland (RBS) try to come to terms with the announcement of the largest loss in the group's history, there are large question marks over the future of the driving force of the group, Sir Fred Goodwin.
Sir Fred has left his bunker once more to state that the group has been numbed by the recent events but is galvanised for the fight ahead. But is all this too little too late?
Just 12 months ago Sir Fred was the darling of the sector but now he has become the number one public enemy of investors. While there is no doubting the fact the group has been hit hard by recent expansion plans - however well intended they were - it is more the public relations angle which has caused most concern.
Investors had been buoyed by the moderately upbeat statements just prior to the rights issue and the sound reasons for the fund raising. However, through no fault of the company's, the situation seemed to worsen around the time the rights issue period was ending leaving many investors with shares which were initially trading at a discount in the market.
Investors have very long memories as many companies on the stock market have found out to their detriment!
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