Showing posts with label Royal Bank of Scotland. Show all posts
Showing posts with label Royal Bank of Scotland. Show all posts

Monday, August 25, 2014

Scotland ‘should not take on UK debt’
unless it can keep the pound

Sir James said Scotland could continue to use the pound as legal tender inside the country if necessary, whatever London decides Photo: PA
Scotland ‘should not take on UK debt’ unless it can keep the pound
Yes campaign’s economist plots way ahead if Westminster refuses to share sterling

By Ambrose Evans-Pritchard

9:24PM BST 24 Aug 2014

An independent Scotland should walk away from its share of the UK’s national debt if Westminster continues to refuse a sterling union, one of the Yes campaign’s leading economic gurus has advised.

“Britain inherits the debt,” said Sir James Mirrlees, a Nobel Prize-winning economist and a prestigious figure on Scotland’s Council of Economic Advisers.

[WHAT DEBT?  Its the debt of the City of London!  They have been foreclosed upon! -AK]

“It is hard to see how Scotland can take on the debt unless there is a full currency union,” he told The Telegraph. “This is implied by the hard-line taken by Westminster. It is Scotland’s bargaining position.”

Crawford Beveridge, chairman of Scotland’s Fiscal Commission Working Group, warned last week that any such move would be “morally difficult” [Hahaha! Morally difficult? Don't you like how bankers speak of morals when it comes to debt?  Hahaha!]  and likely deemed a “default” by credit ratings agencies.

Not even the Baltic states entirely repudiated Soviet-era debts in the early 1990s, even though the Soviet occupation of their countries was never recognised by the West. It would be hard for Scotland to invoke the “doctrine of odious debts” – where debts run up by despotic regimes can legitimately be reneged on – under international law.  [Note: the One People's Public Trust has already foreclosed on the creditors for operating systems of slavery. This would make them a despotic regime, since they are posing as the people's governments - via the Bank of England.  There is no debt owed, except by the creditors to humanity!  -AK] The Czech and Slovak republics divided the Czechoslovak debt on a pro-rata basis after their “velvet divorce”.

Sir James said Scotland could continue to use the pound as legal tender inside the country if necessary, whatever London decides. “No country has stopped its currency from being circulated in another state that I know of,” he said.

He suggested that Edinburgh could equally issue a Scottish pound that is pegged to sterling and backed by a currency board along the lines of Hong Kong’s model. But, in his opinion, neither option, if forced upon Scotland, would entail any obligation to take on UK debt.

Sir James said this clash can be avoided. He believes the common sense option for all involved is to agree on a co-operative union. The British themselves would enjoy a “non trivial” benefit from being able to use their own coin in Scotland. “The easiest transition would be to keep using sterling for five to 10 years,” he said.

All three parties in Westminster say they will oppose a currency union after independence, insisting that the eurozone crisis has revealed the perils of trying to share a currency with separate fiscal policies. Sir James played a central role in First Minister Alex Salmond’s Fiscal Commission earlier this year in drafting plans for a future currency. A former Cambridge professor, he is now professor-at-large at the Chinese University of Hong Kong.

He said the eurozone currency experiment has gone badly wrong – and has previously called for the weaker Club Med countries [I wonder if Club Med objects to be used as adjective of poor countries? I believe that name is a trade mark is it not? -AK] to withdraw – but insists that a UK-Scottish currency union would be a different animal. “The risks have been greatly exaggerated,” he said, speaking at the Nobel laureates’ gathering in Lindau, Germany.

Monday, November 25, 2013

Banks 'destroying small firms': Cable report accuses RBS and Lloyds of 'unscrupulous' practices. Probe claims RBS and Lloyds have deliberately caused small firms to fail.


What's unstated here is how much of this is going on in banks that are not state backed/owned... -Bill

Banks 'destroying small firms': Cable report accuses RBS and Lloyds of 'unscrupulous' practices

Probe claims RBS and Lloyds have deliberately caused small firms to fail. RBS, 80 per cent owned by taxpayer, referred to financial watchdogs. Bank claims it tried to help the businesses, 'but can't save all of them'

http://www.dailymail.co.uk/news/article-2512791/Banks-ruin-firms-just-make-killing-RBS-Lloyds-branded-unscrupulous-profiteers.html

By RUPERT STEINER
PUBLISHED: 17:26 GMT, 24 November 2013 | UPDATED: 00:30 GMT, 25 November 2013

Business Secretary Vince Cable
commissioned the report which
accuses the two banks,  which are
part-owned by the  taxpayer, of
deliberately ruining small firms
Britain’s two State- backed banks have been accused of ruining thousands of small firms by using ‘unscrupulous’ business practices.

Royal Bank of Scotland and Lloyds ‘harmed their customers through their decisions and caused their financial downfall’, according to a bombshell report released today.

RBS is said to have acted like a ‘hit squad’ by deliberately causing healthy businesses to go bust for its personal gain.

In the worst cases, the bank withdrew lines of credit for previously solvent firms by charging eye-watering fees and charges so it could then seize their assets – typically property – at knockdown prices.

Lloyds Banking Group is also singled out in the extraordinary allegations in an independent report commissioned by the Government.

Entrepreneur Lawrence Tomlinson was asked by Business Secretary Vince Cable to look into small business lending.

He accuses many of Britain’s banks of ‘heavy-handed profiteering and abhorrent behaviour’. Last night Mr Tomlinson said if it was proved there was ‘systematic and institutional fraud’ at the banks, ‘you should see  people going to jail’.

His report reserved its most damning criticism for taxpayer-backed RBS and Lloyds. He said: ‘It is undeniable that some of the banks, RBS and Lloyds in particular, are harming their customers through their decisions and causing their financial downfall.’

The allegation will be a major embarrassment for both lenders and the Government, which owns an 82 per cent stake in RBS and 43 per cent in Lloyds.

Thursday, March 7, 2013

Millions left without money as RBS systems crash



http://www.telegraph.co.uk/finance/newsbysector/epic/rbs/9914242/Millions-left-without-money-as-RBS-systems-crash.html

Millions left without money as RBS systems crash
Up to 17.5 million RBS banking group customers were left without their money last night as the bank’s systems crashed.

By Hayley Dixon12:03AM GMT 07

The group, which owns Royal Bank of Scotland, NatWest and the Bank of Ulster, apologised to its customers amid reports that they were unable to access their accounts or withdraw money.
The crash comes just months after a computer meltdown that left millions of customers unable to withdraw cash.

People claimed that they had been left stranded, hungry and embarrassed as they were unable to access their own money and had their cards declined.

Monday, December 17, 2012

Secret Libor Transcripts Expose Trader Rate-Manipulation



http://mobile.bloomberg.com/news/2012-12-13/rigged-libor-with-police-nearby-shows-flaw-of-light-touch.html
Secret Libor Transcripts Expose Trader Rate-Manipulation
By Liam Vaughan and Gavin Finch
December 13, 2012 11:01 AM EST

Every morning, from his desk by the bathroom at the far end of Royal Bank of Scotland Group Plc’s trading floor overlooking London’s Liverpool Street station, Paul White punched a series of numbers into his computer.

White, who joined RBS in 1984, was one of the employees responsible for the firm’s submissions to the London interbank offered rate, or Libor, the global benchmark for more than $300 trillion of contracts, from mortgages and student loans to interest-rate swaps. Behind him sat Neil Danziger, a derivatives trader at the bank since 2002. On the morning of March 27, 2008, Tan Chi Min, Danziger’s boss in Tokyo, told him to make sure the next day’s submission in yen would increase.

“We need to bump it way up high, highest among all if possible,” Tan, known by colleagues as “Jimmy,” wrote in an instant message to Danziger, according to a transcript made public by a Singapore court and reviewed by Bloomberg before being sealed by a judge at RBS’s request.

The trader typically would have swiveled in his chair, tapped White on the shoulder and relayed the request, people who worked on the trading floor said. Instead, as White was away that day, Danziger input the rate himself.

The next morning RBS said it paid 0.97 percent to borrow in yen for three months, up from 0.94 percent the previous day. The Edinburgh-based bank was the only one of 16 surveyed to raise its rate. If it had lowered its submission in line with others, the cost of borrowing in yen would have fallen one-fifth of a basis point, or 0.002 percent, according to data compiled by Bloomberg. Even that small a move could mean a gain of $250,000 on a position of $50 billion.

Events like those that took place on RBS’s trading floor, across the road from Bishopsgate police station and Dirty Dicks, a 267-year-old public house, are at the heart of the biggest and longest-running scandal in banking history.



UBS Said to Face Fines of More Than $1 Billion in Libor Probes

For years, traders at RBS, Barclays Plc (BARC), UBS AG (UBSN), Deutsche Bank AG (DBK), Rabobank Groep and other firms that stood to profit worked with employees responsible for setting the benchmark to rig the price of money, according to documents obtained by Bloomberg and interviews with two dozen current and former traders, lawyers and regulators. Those interviews reveal how the manipulation flourished for years, even after bank supervisors were made aware of the system’s flaws.

The conspiracy wasn’t confined to low-level employees. Senior managers at RBS, Britain’s largest publicly owned lender, knew banks were systematically rigging Libor as early as August 2007, transcripts of phone conversations obtained by Bloomberg show. Some traders colluded with counterparts at other banks to boost profits from interest-rate futures by aligning their submissions. Members of the close-knit group knew each other from working at the same firms or going on trips organized by interdealer brokers such as ICAP Plc (IAP) to Chamonix, a French ski resort, or the Monaco Grand Prix.