If the right moves are made, RBS could become a great bank again. If not, Ian Fraser doubts the bank will exist in ten years’ time. An ethical revolution is required
Financial crisis 2008
As RBS crashed there was only one man in the driving seat – but his fellow passengers could have helped to steer a safer course. Edited and abridged extracts from Ian Fraser’s best selling Shredded identify four guilty men.
[Goodwin] told Alistair Darling that conditions were very bad and that RBS had been considering whether to stop lending to customers. Darling asked Goodwin what would resolve the situation and Goodwin said ‘long-term funding’. How ‘Fred the Shred’ continued to ignore the warning signals, nevertheless.
‘I think the deal stinks’ said one Lloyds shareholder. ‘A lot of people will lose their jobs’, said the former Bank of Scotland CEO. No-one foresaw the full and lasting cost of Lloyds rushed takeover of HBOS in September 2008.
To mark the tenth anniversary of the financial crisis, Sceptical Scot’s new series focuses on home-made follies; the extraordinary mistakes made by two once revered and typically prudent Scottish institutions: the Bank of Scotland and the Royal Bank of Scotland.