The UK prime Minister Mr. Gordon Brown unveiled today a second bank rescue package including powers for the Bank of England to lend up to £50bn directly to businesses, as he accused the Royal Bank of Scotland of taking ”irresponsible risks” as the bank’s shares collapsed.
His comments came as RBS warned it could report an annual loss of up to £28bn, following the mis-timed acquisition of ABN Amro, the Dutch lender it acquired as part of a €71bn (£63bn) hostile break-up bid in 2007.
”Almost all their losses are in subprime mortgages in America and related to the acquisition of ABN Amro. These are irresponsible risks taken by the bank with people’s money in the UK,” Mr Brown said, adding that the decision to buy ABN ”was wrong”. Source FT Online 19/1/2008.
His comments came as RBS warned it could report an annual loss of up to £28bn, following the mis-timed acquisition of ABN Amro, the Dutch lender it acquired as part of a €71bn (£63bn) hostile break-up bid in 2007.
”Almost all their losses are in subprime mortgages in America and related to the acquisition of ABN Amro. These are irresponsible risks taken by the bank with people’s money in the UK,” Mr Brown said, adding that the decision to buy ABN ”was wrong”. Source FT Online 19/1/2008.
On the same day Williams is presenting their new 2009 Formula 1 car in Algarve where RBS is still being figured as a main sponsor, is that not a contradiction and, at least not very ethical, when in times of economic downturn and deep banking crisis where the industry is laying people off, with government bailouts,….just ,... To go, …..and keep sending corporate guests around the world for entertainment by still being involved in Motorsport Sponsorship? What do You think ?
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