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Thursday, February 26, 2009

RBS Breaks a Record

Congratulations to the Royal Bank of Scotland (RBS) for posting the largest loss in British corporate history (£24.1BN in 2008). Given the appalling state of its finances, RBS is to receive a further £25BN capital injection from the overworked British taxpayer, and will place £325BN of toxic "assets" in the government insurance programme.

Clearly RBS is following the old banking maxim that if you owe a small amount, the lender has you by the balls; whereas if you owe a large amount, you have the lender by the balls.

Needless to say the dire situation which RBS has placed itself in threatens many of the jobs of its employees. However, one man who seems to be doing OK is its ex CEO Sir Fred "The Shred" Goodwin, who is currently receiving a pension of £650K per annum (despite being only 50).

Unsurprisingly Alistair Darling is a tad peeved at RBS for treating Goodwin so generously, and even more peeved at Goodwin for taking the money. In fact Darling was so peeved, that he sent Lord Myners to have a word with Goodwin about the wisdom of taking the money.

Darling is still waiting for an answer.

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