Five years after giving Royal Bank of Scotland Group Plc a record banking bailout, the British government is making it harder to recoup its money by sowing confusion over the firm’s structure and future profitability.
Royal Bank of Scotland Group Plc, the recipient of the biggest banking bailout in the world, will eliminate more jobs and close additional branches before its restructuring is complete, Chairman Philip Hampton said.
Rory Cullinan runs the world’s worst bank from a fifth-floor office overlooking Liverpool Street station in London. His 400-person outfit doesn’t lend money or trade securities. Instead, it sells blown-out mortgages, busted loans and entire companies amassed by Royal Bank of Scotland Group Plc before it collapsed in the global financial crash of 2008. On a Friday afternoon in February, Cullinan is savoring a new feeling in his life as a toxic-asset disposal specialist: hope that the worst is finally over.
Royal Bank of Scotland Group Plc’s pledge to recoup 300 million pounds ($470 million) of its fine for rigging interest rates from bankers’ bonuses was criticized by British lawmakers as an exercise in “creative accounting.”
Royal Bank of Scotland Group Plc Chairman Philip Hampton said big increases in bankers’ pay haven’t been matched by what they’ve delivered to shareholders, the BBC reported, citing an interview to be aired tomorrow. “The most peculiar thing about it all, actually, if you look at the last 10 years of massive increases in pay, is that the performance for shareholders has been pretty disastrous really across most banks,” the broadcaster cited Hampton as saying.
Banco Santander SA’s decision to abandon its 1.7 billion-pound ($2.7 billion) purchase of 316 Royal Bank of Scotland Group Plc branches may prompt the U.K. lender to keep them or seek more time to find a new buyer.