June 7, 2013: Apologising if he sounds “pompous”, Hester says the RBS job was something he took on as a “mission. I could have stayed out of the limelight at British Land but I wanted the challenge. Now I’ve taken it on, it commands all my focus.” Returning RBS to sustainable profitability and to private sector ownership will be the key measures of success. “I hate not winning, I hate it,” he says with a glimmer of passion. June 12, 2013: Stephen Hester, the chief executive of the part-nationalized Royal Bank of Scotland, announced on Wednesday that he was leaving the bank. [FT, Dealbook]
When it comes to telling employees to take a long lunch and not come back. Read more »
Once, in 2007, the people who ran RBS though it would be a good idea to buy a Dutch bank with lots and lots of toxic assets. It proved to be not so good an idea, so RBS needed to raise some cash. So it sold £12 billion worth of new stock in June 2008.
In the face of a £28 billion net loss it announced a few months later, that fresh capital evaporated rather quickly, forcing a new share sale to Her Majesty’s Treasury. The people who bought those £12 billion in shares, unsurprisingly, aren’t thrilled about what happened to the value of those shares before and after nationalization. So 12,000+ are suing, seeking several billion pounds from Fred Goodwin & Co., which makes the loss of his knighthood seem rather a bargain. Read more »
Mervyn King is leaving the Bank of England in a couple of months, and he’s got nothing to lose. So he’s spitting in George Osborne’s eye, blaming RBS for bollocking up the British economy and calling for a Solomonic solution to the problem. Read more »
The bank, which is 82 percent owned by British taxpayers, said its fourth quarter losses increased 44 percent from a year earlier, to 2.60 billion pounds. That led to a full-year loss of 5.97 billion pounds ($9 billion), up from a shortfall of 2 billion pounds in 2011…RBS suggested that when investors take into account the one-time costs — such as paying the LIBOR fine — the bank is in much better shape than it might look. Operating profit, a measure of earnings before tax and one-time charges, rose to 3.46 billion pounds last year from 1.82 billion pounds. “I think we are coming really closer to the point where we are a normal company again,” Hester told the BBC. [NYP]
Bonus Watch ’13: RBS’s Chairman Doesn’t Give A Baker’s Fuck If Parliament Thinks His CEO Is OverpaidBy Bess Levin
Philip Hampton isn’t going to go so far as to say Stephen Hester earned it but he is going to just put it out there that other bank CEOs get paid a lot more. So if you think about it, Hester is barely making enough money to put food on the table. Relatively speaking. Read more »