Reply to post: Re: RBS?

Royal Bank of Scotland website goes TITSUP*

Velv

Re: RBS?

“Fred Goodwin did it another way. He simply leveraged the bank to a stupid extent and then purchased a load of sub-prime (ABN AMRO). ”

Shows how little you know. RBS was not leveraged, it bought the sub-prime ABN-AMRO with 10Bn cash. The problem was then not having any “savings in the bank” when hard times hit.

If RBS had not bought ABN AMRO and Barclays had won the deal, when the crash hit Alistair Darling would have been asking Fred Goodwin to bail out Barclays in the same way he asked Lloyds to bail out Halifax Bank of Scotland. There would have been no under the table Qatari rescue of Barclays.

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