RBS chief: Taxpayers must profit from bank bailout

(Update) Stephen Hester says taxpayers can and should make a profit on the banking bailout, but new Treasury Committee chairman, Andrew Tyrie, says the government should instead focus on improving competition.

Markets

Other markets

Market Data Notice

More market charts

by Deborah Hyde on Jul 13, 2010 at 15:40

'Banks were not the only players. Everywhere it suited consumers to be able to consume more, to see housing values increase, to enjoy higher public spending based on buoyant tax revenues,' he said.

Tyrie agreed. 'It is time to recognise all of us played our part. Corporates and individuals also share the blame for irresponsible borrowing,' he said.

Big banks

While the UK government has set up a commission to look at banks, and business secretary Vince Cable still believes banks should be made smaller, Hester thinks such a step is unnecessary.

Hester, like HSBC chairman Stephen Green earlier in the day, said there were a number of common causes of bank failure during the crisis but said one thing that was 'emphatically not a common factor was the size, shape or diversity of failed banks'. Nor was excessive speculating and proprietary trading activities, he said.

Green said the failure of both Northern Rock and Bear Stearns during the crisis showed that banks of different sizes and with different activities were equally vulnerable.

Email a friend

Email me when someone comments on this article Print

6 comments so far. Why not have your say?

Yes why not pay a dividend?

report this

Get real Hester.

report this

Hester,

I can see where you get your perspective (from the top of an Ivory towe no doubt) however, go and secret shop in one of your own branches, have a convseration with a guy there whom it seems like is just giving you information about a credit card, then go home and find one on your doorstep when you get home....

Let's be conservative for arguements sake and say that only 1 in 4 people in this country is completely stupid, and will pick up said uncompetative credit card and 'fire at will' then times that by the millions of people irresponsible bank lending seems to thrust this on, result = default. Knee jerk bank reaction = stop lending to everyone. Market reaction = meltdown.

That is why the banks must shoulder the 'majority' blame. Though I do think an irresponsible media has fanned the flames

report this

I am looking forward to recevieing my money back with interest for the shares I owned in B&B that the government took over. Remeber they were going to sell the mortgage business for £4.5bn. They lent £14.6bn to Santander/Abbey in case we all wanted our money out which they must have back by now so where is my compensation for the shares. A letter arrives today saying I will get nothing zero, de nada. Everyone makes a profit except the little guy eh!

report this

Yes, it is true to say that the banks were not the only culprits. However, a small number of bankers and their like made huge amounts of salary and bonus on the back of all the lending. They effectively stole this money from everyone else. Don't sympathise with them. Tax them to recover the stolen millions and use this money for the common good.

report this

MrFiat

Jul 15, 2010 at 19:01

someone please put RBS out of its misery......

report this

Please sign in here or register here to comment. It is free to register and only takes a minute or two.