My banker follow up

As a follow up to the previous post, it seems, to simple little me, a ‘no-brainer’ that when buying a bank you check the quality of the loan book, and look out for any ‘nasties’.

Apparently not for the Royal Bank of Scotland. I see that RBS are the biggest loser in the collapse of Lyondell Chemical.

The Daily Telegraph put it nicely when they said in their report on this story:

“RBS, which has already warned of billions of pounds worth of writedowns in the wake of the credit crisis, may face losses on $3.47bn (£2.34bn) of loans to the [bankrupt] US chemicals company.

News of RBS’s exposure comes as the latest blow to the UK bank following its acquisition of ABN Amro. RBS’s decision to buy the Dutch bank in the face of the economic downturn helped seal the fate of former chief executive Sir Fred Goodwin.”

Of course, being government owned, that’s taxpayers money tha’s been lost.

I heartily recommend John Redwood’s blog. Full of sound economic sense. Read HERE his latest thoughts on Northern Rock, and the result of its nationalisation.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.