Royal Bank Of Scotland Share Discussion Threads

[careful] 17/1/2018 20:30

When will the Fed put up interest rates and let this dangerous asset bubble down.?
Trashing the currency will cause disaster in the long term.
Hyper inflation in asset prices only.
A rich mans policy as Buffett said recently.

The measure of inflation, with cheap labour, cheap money and automation is wrong.

[leedskier] 17/1/2018 20:01

New York taking the night off last night -- though not today -- was a gift for the City. That is two back to back days London has faltered.

add

RBS was the biggest FTSE100 faller today.

[smurfy2001] 17/1/2018 18:26

300p failed yet again. Just can’t get it’s leg over 😂

[irish_neris] 17/1/2018 16:49

"Let Customers Hang Themselves:’ RBS Memo Fuels Lending Scandal"

[cfc1] 17/1/2018 10:59

fact is that govt CANT do ANYTHING themselves! We assume the civil service employs great people - THEY DONT. ...Very few of them would get offered jobs in private sector.
Corillian should have worked away from bad T&Cs.....gov't has a habit of trying to screw suppliers.

[maxk] 17/1/2018 09:52

A decent article from Moonboot, nail on the head!



The PFI bosses fleeced us all. Now watch them walk away


When contracts fail, the legal priority is still to pay firms like Carillion. Money is officially more valuable than life


George Monbiot
Tue 16 Jan 2018 18.45 GMT


Again the “inefficient” state mops up the disasters caused by “efficient” private companies. Just as the army had to step in when G4S failed to provide security for the London 2012 Olympics, and the Treasury had to rescue the banks, the collapse of Carillion means that the fire service must stand by to deliver school meals.

Two hospitals, both urgently needed, that Carillion was supposed to be constructing, the Midland Metropolitan and the Royal Liverpool, are left in half-built limbo, awaiting state intervention. Another 450 contracts between Carillion and the state must be untangled, resolved and perhaps rescued by the government.


When you examine the claims made for the efficiency of the private sector, you soon discover that they boil down to the transfer of risk. Value for money hangs on the idea that companies shoulder risks the state would otherwise carry. But in cases like this, even when the company takes the first hit, the risk ultimately returns to the government. In these situations, the very notion of risk transfer is questionable.

Nowhere is it more dubious than when applied to the private finance initiative projects in which Carillion specialised. The PFI was invented by John Major’s Conservative government, but greatly expanded by Tony Blair and Gordon Brown. Private companies finance and deliver public services that governments would otherwise have provided.

The government claimed that the private sector, being more efficient, would provide services more cheaply than the private sector. PFI projects, Blair and Brown promised, would go ahead only if they proved to be cheaper than the “public sector comparator”.


More:

[maxk] 17/1/2018 09:01

Little wonder Tristram and Andy legged it out the door when they had the chance.

They saw it coming.

[leedskier] 17/1/2018 08:30

All very sad ...


"Labour 'completely taken over by Leftist clique' says Sir Tony Robinson"


The hard left having taken control now look to replace Corbyn on the premiss that he will be too old come the next election. Doubtless his replacement will be fashioned in the Trotsky mould. One can confidently predict that there will be wholesale deselections of Labour Party moderate MPs and candidates between now and the next election.


With the LibDems all but extinct, it is a worrying time in British politics for those who believe in Parliamentary Democracy and consensus governance. The Tories better get their act together before the next election.

[leedskier] 17/1/2018 07:39

Quite ...



Pressure was mounting on Carillion’s former top brass last night after the government promised a thorough investigation into the actions of the failed firm’s executives.

A probe by the Official Receiver was ordered to be fast-tracked and widened by business secretary Greg Clark. “Any evidence of misconduct will be taken very seriously,” he said.

Cabinet Office minister David Lidington told parliament he would not pre-empt such a review but stressed “severe penalties” would be imposed if misconduct was found.

The tough stance came as fresh details emerged about the perilous state of Carillion’s finances when it crashed into liquidation early on Monday morning.


RBS insisted it withdrew support because the company “was not viable”. Santander said it removed the EPF in December after Carillion made a “material additional funding requirement”.

[blusteradjuster] 17/1/2018 07:25

Maybe they didn’t like the directors’ renumeration packages.

[leedskier] 17/1/2018 07:00

The fall out from CLLN could cause ripples across the construction industry. Banks will be looking closely at bothers in that sector.



As for today inevitably London will follow NY last night snd Asia this morning and track down.


What is less clear is whether this is bond related or just a case of the Americans taking time out.


Commodities tracking down overnight too, so there may be little help from that sector.

[polar fox] 16/1/2018 20:54

Another piece for the jigsaw, from the BBC:

RBS said in a statement to the BBC that it had "provided considerable support and forbearance to Carillion over many months".

"The judgement of the bank was that the restructuring plan put forward by the company was not viable and therefore we took the difficult decision not to extend further funding and increase our exposure to the business.

"We need to balance the interests of all our stakeholders when taking these decisions, and on that basis, we regrettably were not in a position to continue to put further funds into the business."

unquote

[polar fox] 16/1/2018 16:59

Yes, Leeds - I just skimmed the 2016 A/R and their banker is shown as NatWest, South Parade, Nottingham. RBS are into these people up to their eyeballs, as we shall no doubt discover on Feb.23!

You probably know Slaughter & May in the City - I certainly do - well, they are shown as Legal Adviser. Hmmm.

[leedskier] 16/1/2018 15:28

I suspect that they are.

[polar fox] 16/1/2018 14:27

Interesting wrinkle:

Sky News understands the interim chief executive of Carillion Keith Cochrane has accused RBS bank of undermining the construction and services company's efforts to save money and avoid liquidation.

unquote

EDIT - add

A relevant para from an FT article:


Mr Cochrane also said that the company’s cash position was further eroded after Royal Bank of Scotland, the state-backed bank, last Friday proposed that the company move to pre-fund its BACs payments. This would mean that the company would pay suppliers two days earlier than its cash flow forecasts assumed, he said, leading to a hit of between £2m and £20m.

unquote

Are RBS Clln's main bank? - the bank do seem to be up to their necks with the company, one way and another.

[smurfy2001] 16/1/2018 12:19

30p old money appears to be a struggle.

[blusteradjuster] 16/1/2018 11:39

Politicians everywhere are petrified of being honest with their electorates about demographic shift.

It’s seen as a vote loser ... so they kick it into the long-grass hoping it blows up after they’ve secured the cushy job in finance/industry once they’ve had their time in office.

[leedskier] 16/1/2018 11:20

Good. Hopefully sanity is being restored.

[gcom2] 16/1/2018 09:52

Bitcoin appears to be 'crashing'.

[polar fox] 16/1/2018 09:02

This probably explains the soft banks early on - from the Times:

Lenders to Carillion, including the state-backed Royal Bank of Scotland, are facing hundreds of millions of pounds in losses after the contractor crashed into liquidation yesterday.

Thirteen banks, led by the high street lenders RBS, Barclays, Lloyds, HSBC and Santander, extended an estimated £1.6 billion in debt to Carillion that they will hope to recover through the liquidation. The debt is on top of the construction and support services group’s pension liability of almost £600 million.

unquote

[leedskier] 16/1/2018 08:47

I have the same problem;

Today it is ... the UK inflation figures