I think we’ll be forced to pay as much as we can.
RBS lost around UK £48bn or €60bn to date, one third of that in Ireland and 2/3 elsewhere.
HBOS losses, parent of BOSI, are a tad less overall , we will know the scale of the HBOS/BOSI mess later this summer as an in depth report is due to be issued on th ematter > telegraph.co.uk/finance/news … ummer.html
The pair of them ( RBS and HBOS) will have amassed losses of around £100bn by the time it is all added up ( 2008 - 2014) and some £30bn of those losses will have been incurred on their Irish operations alone.
No banking enquiry here could be complete without referring to the push efect that the pair of UK banks exerted on the likes of AIB and Anglo. BOSI was the single absolute worst thing that ever happened in Irish banking and as it turns out it poisoned the UK environment as well.
That’s a strong statement to make. I see the point you are making, that BOSI dropped their pants to gain market share, but surely it was the Irish banks who are at fault to followed BOSI down the dangerous road. And lets not forget why the Irish banks did that, their bonuses were dependent on it.
We really should be moving to a system of linking the payout of bonuses to the duration of the products being sold. Ideal world and all…
The Irish bankers who decided to protect their bonuses, by following BOSI down, still have their pensions, their bonuses etc. And yet we are told there is nothing that can be done about it. Bullshit
Some years back a company tried selling me a pension product.
But I wasn’t interested in the company’s small print about ALL first year contributions being taken as commission, meaning the actual pot wouldn’t start accumulating for over twelve months. Not interested at all, so I suggested an alternative - how about a percentage every year of the amount by which the company had increased the pot, keeping the company interested in its growth all the way through to end date.
But the salesman just laughed, no company would give you that, dream on, said he.
On your bike so, said I.
Bank risks loss of 50,000 home loans after ratings move - Sarah Stack -> independent.ie/business/iris … 38656.html
Ulster Bank customer gets loan interest written off - John Walsh -> irishexaminer.com/business/u … 71087.html
RBS courts private equity for Ulster Bank
The step-by-step plan for RBS getting the hell out of Ireland is now much clearer …
(1) Private equity (seems like Warburg Pincus, CVC, KKR or Permira) take a stake in Ulster Bank. RBS reduces stake.
(2) Ulster Bank merged with PTSB and / or KBC. RBS reduces stake further or exits.
(3) New merged entity floats on the Irish stock exchange. RBS gone at this stage?
Step 1 seems to be a raging certainty given the reported big interest of private equity groups.
Step 2 will be difficult to pull off. Highly complex. Putting two or three badly damaged balance sheets together is not easy. Limiting competition will not be good for the consumer. It is clear that KBC are interested. It is clear that Ulster Bank are interested. It is clear that Noonan wants PTSB to talk but not clear if PTSB are interested.
Apparently Warburg Pincus are the most likely candidate to purchase an equity stake in Ulster Bank.
The primary objective of the RBS plan is to avoid balance sheet consolidation of Ulster Bank going forward.
KBC have ruled out merging with Ulster Bank. Future of KBC, post 2016, uncertain.
m.independent.ie/business/irish/ … 63071.html
That leaves PTSB as the only merger option for Ulster. It is not clear if PTSB are on board and a merger of these 2 troubled balance sheets would be complex.
I heard interesting chatter about an imminent deal. Not Warburg tho.
Not sure if a hive off or selling off loan books. Household name of the celeb variety
Interesting. Not surprised if a different private equity group buys an equity stake. Very surprised if the purchase is anything other than an equity stake.
Celeb variety?! Hmmmm … Virgin Money??
SBP reports that Ulster Bank Northern Ireland is likely to be merged into Natwest.
SBP also reports that PE/VC negotiations to acquire a stake in Ulster Bank RoI are not at an advanced stage yet.
RBS could fail due to ‘£100bn black hole’ - with British taxpayers in line to lose their entire £45bn stake - -> independent.co.uk/news/busin … 66823.html
Sunday 01 June 2014
As I expected, putting Ulster Bank and Permo together may be too complex and too costly.
The Indo reports that merging the UB and Permo systems would cost a small fortune. Also, a costly restructure of UB would also be required as a preamble.
It is not off the cards. But it is looking less and less likely.
Private equity seems the only card RBS has unless they find the muscle to close UB RoI.
The days of the traditional branch network are numbered as google wallet and others gain traction.
Banks’ monopoly may be ending as Google, Facebook enter payments market - Lingjiao Mo -> news.medill.northwestern.edu/chi … ?id=231311
Amazon’s Fire Phone could add 55% to your shopping bill - -> marketwatch.com/story/amazon … 2014-06-19
He’s down, safe and well and - arrested.
That’s great news. Some folk on facebook had him down as jumping.
Smaller branches mostly.
There will be very little left in smaller towns of only a few thousand inhabitants; not saying it should be stopped though.