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RBS officially costliest bailout in the world!

Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
But hey what's 45 billion pounds between friends? Story.

At this rate they'll be bringing out the wheelbarrows soon, dear oh dear..

http://www.youtube.com/watch?v=amGI5T0JGDc&feature=player_embedded

Comments

  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    But hey what's 45 billion pounds between friends? Story.

    And thats just Fred's pension ;)
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    And what would be the cost of the bank failing?

    A hell of a lot more, I can assure you.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    What would have happened if RBS had gone under? Well, I might well have lost all my money - NatWest, who is owned by the Scottish bank, is where I do my banking. On a less personal note, there would have been hundreds of thousands of redundancies made and the Scottish economy would have taken a massive hit. I wasn't keen on the bail-outs being made at the time, but I can understand why it was done. Few other options were available.

    It's now time for the Government to fix this problem. It doesn't need lengthy amounts of new regulation to do it either. All it needs to do is implement a law that says banks must have sufficient funds at all times to pay their creditors back in the event of a run on that bank. Failure to do so would mean criminal charges being brought against the entire board of the bank. Make bank directors criminally responsible in the event of breaches and the system will tidy itself up pretty quickly.

    If that system had been in place a few years ago, Adam Applegarth, the man who used to run Northern Rock, would now be serving a life sentence. Fred Goodwin wouldn't be particularly far behind either - but thanks to the Government's monumental cock-up, he is now enjoying a pension whose size is beyond most people's dreams.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    stargalaxy wrote: »
    What would have happened if RBS had gone under? Well, I might well have lost all my money - NatWest, who is owned by the Scottish bank, is where I do my banking. On a less personal note, there would have been hundreds of thousands of redundancies made and the Scottish economy would have taken a massive hit. I wasn't keen on the bail-outs being made at the time, but I can understand why it was done. Few other options were available.

    It's now time for the Government to fix this problem. It doesn't need lengthy amounts of new regulation to do it either. All it needs to do is implement a law that says banks must have sufficient funds at all times to pay their creditors back in the event of a run on that bank. Failure to do so would mean criminal charges being brought against the entire board of the bank. Make bank directors criminally responsible in the event of breaches and the system will tidy itself up pretty quickly.

    If that system had been in place a few years ago, Adam Applegarth, the man who used to run Northern Rock, would now be serving a life sentence. Fred Goodwin wouldn't be particularly far behind either - but thanks to the Government's monumental cock-up, he is now enjoying a pension whose size is beyond most people's dreams.

    got more than £20k of savings, or some large abituary number, you wouldn't of lost your savings, their deposits are way less than £45billions, most of that is to sure of money they've lent out which they didn't have in the first place
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    And what would be the cost of the bank failing?

    A hell of a lot more, I can assure you.

    Uh actually no that's just a big lie we've all been scared into believing, there are lots of ways to put banks into receivership/administration without destroying the wider economy....which is effectively what they've done by kicking the can down the road, I don't think you get it that the bad debt and risk hasn't disappeared, in fact they haven't fixed anything!

    All that shit is now on the public balance sheet and sterling is one step closer to an almighty shitnap. People aren't going to wake up until their utility bills go up 300% and a loaf of bread costs a tenner. Oh and income tax rates will have to go upwards of 70% to pay the monumental interest rate on a debt that cannot be serviced. It's all coming folks.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    Uh actually no that's just a big lie we've all been scared into believing, there are lots of ways to put banks into receivership/administration without destroying the wider economy....which is effectively what they've done by kicking the can down the road, I don't think you get it that the bad debt and risk hasn't disappeared, in fact they haven't fixed anything!

    All that shit is now on the public balance sheet and sterling is one step closer to an almighty shitnap. People aren't going to wake up until their utility bills go up 300% and a loaf of bread costs a tenner. Oh and income tax rates will have to go upwards of 70% to pay the monumental interest rate on a debt that cannot be serviced. It's all coming folks.

    I do not think you can easily protect people from their own folly.

    I seem to recall that you were sounding the distant early warnings almost 2 years ago.

    If you have heeded your own concerns that is plenty enough, and you should be sitting pretty . . . close to the exit doors ;)
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    I do not think you can easily protect people from their own folly.

    I seem to recall that you were sounding the distant early warnings almost 2 years ago.

    If you have heeded your own concerns that is plenty enough, and you should be sitting pretty . . . close to the exit doors ;)

    Lol I ran for the exit last month finally and am now living in arguably the world's strongest economy....I don't think anywhere is going to be untouched but the UK is in for a world of pain.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    im waiting for the government to do what most governments do to service their debts when they get too big which is to force inflation up to remove debts and savings
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    im waiting for the government to do what most governments do to service their debts when they get too big which is to force inflation up to remove debts and savings

    You have pinpointed a highly probable predatory danger to yourself there.

    History repeating/rhyming.

    Awareness is a primary step in self defence.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    Actually the most costly is Fannie Mae and Freddie Mac:
    http://money.cnn.com/2009/07/22/news/companies/fannie_freddie_bailout/index.htm

    I'd guess that AIG is probably more costly as well.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    When the doodie hits the fan its a case of first in the life boat wins, there is a second wave reposesions and defaults coming, only zero intersest rates, bail outs and stimulus have delayed it. The stampede for the exits is about to liven up.
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