RBS - The Bank That Almost Broke Britain (Documentary)
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- Опубліковано 3 січ 2023
- In this video, we'll take a look at The Bank That Almost Broke Britain, RBS. We'll learn about the problems that led to Royal Bank of Scotland's near-collapse, and how the government's response saved the day.
If you're interested in learnings from historical events, this is a video you won't want to miss. We'll explore the history of RBS, and how it nearly caused Britain's financial system to collapse. This is a fascinating video that will give you a better understanding of the events that led to the financial crisis in 2008.
The Bank That Almost Broke Britain BBC Documentary 2018 HD
#financialcrisis #stockmarket #documentary #rbs #banking #stockmarketcrash
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#investing #finance #money
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Why have you taken a BBC programme and filled it with adverts every 5 minutes? How do you expect people to watch this programme properly? You have more adverts in it than a US network drama show.
@@johnking5174 Ever heard of Adblockers?
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John 3:16-21
16 For God so loved the world, that he gave his only begotten Son, that whosoever believeth in him should not perish, but have everlasting life. 17 For God sent not his Son into the world to condemn the world; but that the world through him might be saved. 18 He that believeth on him is not condemned: but he that believeth not is condemned already, because he hath not believed in the name of the only begotten Son of God. 19 And this is the condemnation, that light is come into the world, and men loved darkness rather than light, because their deeds were evil. 20 For every one that doeth evil hateth the light, neither cometh to the light, lest his deeds should be reproved. 21 But he that doeth truth cometh to the light, that his deeds may be made manifest, that they are wrought in God.
Mark 1.15
15 And saying, The time is fulfilled, and the kingdom of God is at hand: repent ye, and believe the gospel.
2 Peter 3:9
The Lord is not slack concerning his promise, as some men count slackness; but is longsuffering to us-ward, not willing that any should perish, but that all should come to repentance.
Hebrews 11:6
6 But without faith it is impossible to please him: for he that cometh to God must believe that he is, and that he is a rewarder of them that diligently seek him.
Jesus
@@johnking5174pay for premium mate. Best 12 quid PM you'll ever spend
Why did you feel the need to snap back and forth between past and present every other few sentences? It destroys any linear telling of the facts and makes things look like you were running this out of a primary school.
Treats his employees like dirt and he gets business man of the year and a knighthood, nice to see what values we encourage
It never changes. Sam Bankman-Fried still had cheerleaders in the media after his fraud collapsed. Just a good guy who got in over his head was the narrative they were pushing. Only his arrest put a stop to it.
Not to mention an obscene unearned pension of £400,000.
they value profit over people
@@andlum the pension is fully deserved though? its not like hes achievements in benefiting the country for decades are erased due to a single act of god that left him with no paths.
@@Jack-he8jv The 2008 crisis was not an act of god. It was an act of deceit and hubris.
Its actually sickening to see billions in bailouts to these irresponsible banks and the bankers getting millions in payouts, but if a struggling working class person gets into trouble owing a few hundred pounds, they will come round and take your jewellery, furniture or TV etc.
" they will come round and take your jewellery, furniture or TV etc."
Who will come around? Private debt recovery company? They have zero rights to enter your house, if you let them in, this is on you. No one is forcing a debtor to give anyone anything, debt in the UK is a CIVIL MATTER.
Yeah it’s a civil matter, and courts often order debt collectors to take physical goods to pay debt. Most debt collectors aren’t private companies acting on their own, they’re private collectors acting on court orders
@@pioruns right... and civil matters are dealt with at court and courts can grant permission to bailiffs to recover, backed by police. It's not like an endless crime loop with no consequence.
Banking is intrinsically a SCAM anyway.
Abolish Private banking
@@milkbuns2543 I cannot believe it. Banks create the money and charge high interests. It´s embarrashing .
RBS has long been my most loathed company - twice during the height of “The Shred” years they did despicable acts killing my company and another I was involved with with utter disregard for the smaller investors. The culture insinuated in the bank - like most organisations - comes from the top, and some of the most incompetent, arrogant “businessmen” I have ever had the displeasure to work with were from RBS. The hubris of the Gogarburn installation still makes me gag every time I pass it on the way to the airport. It is such a shame that this man and his irresponsible cronies were able to inflict such harm on the UK and were mainly responsible for the loss of one of the great institutions of Scotland. When he lost his knighthood there were a lot of pints downed in edinburgh pubs I can tell you!
I lost most of my pension pot due to the collapse of that great Ponzi scheme known as Equitable Life. Is there a documentary about that? More than a million people like me saw their financial security destroyed in that collapse. Years of work and saving wiped out, and who was held accountable?
Well said, Cummins, who was MD of RBS Corporate at the time, lived here in Dumbarton. For me, the greatest disappointment was the almost total destruction of a world leading institution, and one of "our own" had a decisive hand in the disaster.. I hope you've bounced back even stronger, Gordon..
That makes two of us then, my business was completely destroyed by RBS GRG after my girlfriend at the time passed away (who was our lead accountancy manager), in the chaos of the aftermath, they ignored my request for breathing space and found a justification to default our loan book, take the business and close it down while leaving me with 250k of fees. Until that event, we had never made a loss, always been profitable and were expanding. All we needed was a little time to make sense of the accounts, arrange a new accountant and deal with the floating charges that both RBS and our new accountants couldn't locate. I lost my home and I lost my partner within 18 months. Never got a word of apology from them. When I was a kid, I was told that The Royal stood for integrity and I fell for it, not a mistake I'd ever make again.
Sorry to hear all that.
Btw, 'insinuated' doesn't fit there, that means to hint at something. Maybe you meant 'instituted'?
@@Stu-SB Not being sarcastic here, but would it have been better to let the 'English' take over in the beginning?
All these bank crisis and recession are all the signs of 2008 market crash 2.0, so my question is do I still save in the US dollar or is it okay to move all emergency and savings to precious metals?.
Keeping some gold is usually a wise decision. You would be better off keeping away from equities for a bit or, even better, seeking advice from an expert given the current market conditions and everything that is at risk with the current economy.
You have a very valid point, I started investing on my own and for a long time, the market was really ripping me off. I decided to hire a CFA, even though I was skeptical at first, and I beat the market by more than 9%. I thought it was a fluke until it happened two years in a row, and so I’ve been sticking to investing via an analyst.
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The whole bunch of them. Fred Goodwin, His Chairman and other senior directors should have been charged and locked up.
If this happened 300 hundred years ago he would have been executed for bankrupting the country
This is called God complex, too big to fail…..psychopathic narcissistic abusive histrionic behaviours.
Hung
@@stephencollins9062 by the balls,
Think the failure to provide restorative justice was a massive factor in Brexit/ disillusionment in 2010's politics. Obviously anti-immigration was a part of this, but think there was also a justified perception that the elite bankers got away with it and yet ordinary people had to put up with austerity and decline in wages... Media class was baffled by Brexit which really shows how they just didn't get the emotions in some parts of the country.
Fred “the shred” Goodwin had an audiovisual system installed in his office at RBS. The typical kind of high end system with a touchscreen control panel which allowed TV, laptop, video conferencing, etc to be displayed on a wall mounted flatscreen display. Fred’s system had a somewhat higher ongoing maintenance cost than any other AV system installed in the RBS offices though - because on a regular basis he grabbed the touchpanel and threw it against the wall! This was in the good days of RBS before they bought ABN amro and got into trouble. It was probably the least of his excesses, but it was the one myself and my colleagues had to deal with.
The AV system on the 12th floor of 280 Bishopsgate was quite impressive. You had to pick up the Direct Line phone/car to get through to the AV guys in the background to fix stuff. One sensed they were on-call 24 hours to patch up anything that didn't work first time
@@TheCaptScarlett Since we are talking about RBS audiovisual, I know just one more anecdote… by design the huge videowall installed in the reception of 280 Bishopsgate was meant to be controlled by software running on a networked RBS PC, but at the time the system was installed, before RBS moved in there was no PC to be had. What could the installers do but run it from their own laptop temporarily, otherwise the thing would’nt display any images. All went well until the application replaying the videowall content crashed, leaving the laptop’s desktop background showing on the huge display. Unfortunately this was a topless model in a skimpy bikini bottom, which made for a fairly bold new corporate image for RBS to launch their new HQ building with….! It became the world’s fastest service call out and fix, believe me…
Not “...myself and my colleagues “, but “ my colleagues and I”. Always put yourself last when listing a number of subject individuals. And you really wouldn’t say, “ Myself dealt with this”, would you ???
@@judeirwin2222 Yeah, but you understood what he meant
@@judeirwin2222 you’re quite right, I should know better 😊
Andrew Bailey 19:14 “I think it’s one of the biggest interventions ever done anywhere”
Liz Truss 2022: Hold my beer
I always felt that George Matthewson's responsibility for the mess was overlooked. In the end he created an organisation that only he could manage effectively. It was the opposite of good management.
Sir George Mathewson
Matthewson is ultimately responsible for helping lay the foundation of the disaster that followed. They fact he got off the Titanic 10 minutes before it was crashed into an iceberg doesn’t absolve him.
Knowing when to jump rather than trying to fix it and do what’s right makes you slippery, not innocent.
@@orfordwolf5409 sycophant
And he kept his money and knighthood while all the attention focused on Goodwin.
I used to work for RBS at their London HQ (280 Bishopsgate). We could always tell when Fred was visiting from Edinburgh because the visitor photo id cameras were removed from the reception desks when he was around. It appears, that in Fred's opinion, the cameras ruined the look of the desks.
I also think that cameras ruin desks in banks. But I am not taking this perception as the basis for making policies in the workplace.
I knew someone who had 11 properies and a business and was encouraged by RBS to invest in a certain market some time after the millenium. All he had left was his Aprilia Mille (a road bike, as he hid it from the bank) the bank took him for everything he and his family had as the investment didnt pan out well. That is a true story.
Terrible 😞
He obviously got all the properties on credit and never really owned any of them outright.
Another physcopth banker should be put behind bars for a long time.All banks and financial institutions need to be regulated by governments that have the populations financial stability and longevity at the forefront of its financial doings.Banks don't represent the needs and stability of our society.
I am thinking if someone could make the calculations in missed taxes and emergency payouts and how many people were harmed or died in the processed by cutting NHS and other services.. And take that before court.
@@JJVernig everywhere around the world is the same.....it all came from US though
It's very difficult in a country run by a government of just one party, and in a two party country in addition.
The EU has a lot better possibilities to actually do it.
Who knows, perhaps it was indeed the reason for some of the Brexit architects.
Then again perhaps one of the Brexit benefits is that the city becomes smaller and a lesser risk for the population.
@JJ Vernig but nhs budget hasn't been cut since 2008. Any year.
Banks certainly do represent the needs. Otherwise you can't start a business or buy a house until you personally have saved all of the required money.
I was an MD in their London office in 2003 and then in Greenwich, CT for 3 years. Left in the Fall of 2007. I immediately sold my CT home. The mgmt there didn't really grasp the concept of Investment Banking. The ABN purchase put them over the edge
With a few exceptions, EU banks have never really been able to figure out advisory on this side of the Atlantic. Just ask DB or UBS.
@@claydouglas2526 Agreed. It's cultural. European banks have always struggled with a US Investment Banking strategy. They have tried to buy their way in (ie First Boston) but they were originally built in their home countries with a deposit mindset. Goldman, Morgan Stanley, ML, and JPM have eaten their lunch on this side of the Atlantic.
Fall ? are you a Yank ? :)
I used to work as a real estate broker and sold my business in 2007. I then joined an investment bank in Jan 2008 we were buying prime assets in prime locations at huge discounts. I bought a building for $80m and sold it to LaSalle 12 months later for $100m having done nothing. Good times
ABN had a toxic mortgage book and no due diligence undertaken.... madness!
Disgusting behaviour…1 week before they offered all employees very low shares so many put their life savings In thinking it was an amazing opportunity, little did they know it was last chance for the bank. They ruined many of their own hard working employees life’s so unnecessary
What!! So patronising to the people! Just disgusting behaviour.
Oh yeah I was watching a programme about RBS and Natwest and most people featured in the branches shown had invested and lost everything
In this perilous time of recession, protecting your capital is much more important than making money. Basically because if you lose your capital, making money is much harder. ''Missing the train'' vs. ''losing your money''. There are a lot of trains, but if your money is gone, it's over. This is for stock holders.
Unfortunately, most people don't get this, the majority is after chasing tops/bottoms where they fail & get out of the game.
@@Shultz4334 Therefore, in the current bearish market, we should pay more attention to the risk rate of the market. We must control the risk to a minimum and maximize earnings. It is best not to blindly enter the market.
@@ThormanBoucher It's tough to grasp the complete risk rate unless you're a pro. That's why I chose to seek guidance and advice from a financial guru named Lisa Ellen Shaw. Ever since then, my portfolio has improved significantly.
@@AveryFetherolf What are the best ways to contact her?
@@RachelBrinkmeier She is usually contacted through her website, which can be found by searching her name online.
It's the stuff of nightmares that banking and investment exist in the same corporate entity to begin with. And the worst part is, nothing really has changed since '08.
That is exactly the problem. Well said.
People lost their homes and life savings. Those bankers should have been treated like the criminals they are.
I used to work for RBS and I got to see how the world really works and who really pulls the strings in life. Some very evil people in this world that aren't even on the radar or well known.
could you elaborate a bit on that? Where are these people and why don't we hear anything about them
Well said. People have no idea
@@mullerstephan cuz it's not necessarily a group of people of all in the know, but most likely people with many assets and big pull over shares in different companies that can stay in the shadows while others do their bidding.
@@quintboredom I know that... at least it can be assumed that these ppl exist. I want to know how these people live, what their plan is and why they are so evil
@@mullerstephan hmmm not so sure it's that deep. There are many things that could explain it, either generational trauma if they're generationally wealthy, or just a complete disregard for people as they've always seen them as servants, or just plain human evil just cuz, like psychopaths, anyway, many ways to explain it imo
RBS DID brake Britain. The only thing is that it has been delayed due to the never-ending QE from central banks all around the world since 2008.
they should have let the banks fail..
absolutely. its coming home now in the form of rapid inflation.
RBS+AUSTERITY+BREXIT+COVID+UKRAINE+KWARTENG=DOWN TURN OF THE CENTURY.
the uk successively made bad choices after this one.
still makes me laugh media spun things after this that Labour misspent taxpayers money
Was about to write exactly the same thing - then saw your post.
15 years on the UK still hasn't had decent recovery from this economic disaster. An unwanted legacy.
What a carry on! Hundreds of years of banking experience, all the tech you could dream of, and it still nearly fucked everyone up. Something is rotting at the core.
Its designe to rot. Society will pay for the damage after ceo and stick holders filled their pockets.
nope just basic human behaviour
@@roc7880 Yeah, greed and egos!
My friend's uncle worked with Goodwin during the early 1980s at what's now Deloitte. He says that Goodwin was ambitious, pretty hubristic, was the type to seek forgiveness instead of permission, and had basically no concept of failure. Nothing could go wrong, so just do it. He also claims that Goodwin was really pretty asocial and wasn't typically confident, charismatic or gregarious in the way many CEOs are.
Friend's uncle's final assessment is that RBS just wasn't suited or experienced in what Goodwin tried to make the company do. It was very experienced and very stable in some things, strengths which they should ultimately have stuck to. They had very little IB experience compared to the likes of Barclays, yet even Barclays pulled out of the ABN Amro bidding war because they got cold feet and realised the price had got too high.
Classic narcissistic sociopath.
nobody was lol. The bank failed due to sub prime mortages? Half of which were probably bought from the us...
Problem with Goodwin was he wasn't a banker; he never looked anyone in the eye and had to make the judgement call of whether to lend them a personal loan or a mortgage, or to pay a cheque against uncleared funds.
He was an accountant who'd got into recoveries and turnarounds and got to play with a couple of banks.
Having a train set doesn't make you a train driver.
I grew up in Corstorphine (Edinburgh), immediately next to that massive HQ they built at Gogar. I remember being 19 back in the summer of 2010; we'd drive out there for a smoke and a chat in my mate's car; it's more or less normal now, but back then, that place was like a ghost town.
“I cannot predict the future……”
Great news from someone who’s job it is.
I worked for RBS (NatWest) up to 2008. The year before we got a "Profit Share" bonus of some shares worth £7 each. It was £3.50 a year later (and no profit share!). It got to £1.50 a share and I considered buying more to dilute the shares as I felt long term it would bounce back (at the time). I bought some when it got to 50p as surely it can't go lower (only a few hundred quid). It got to 20p and I thought it was all gone. Then it hit 10p and the government stepped in. A few years later they did a 10 for 1 consolidation. The share price today is £2.95 (or 29.5p).
Feel you dude. Didn't really lose but i joined Lloyds in 2009 was in there share scheme for 8 years, put all my savings into that. I didn't lose money but it didn't really perform and i didn't make a lot. I vowed after that to stay clear of bank shares. Even today it's lurking at the same price it has been for the last 15 years.
The Government paid 42p a share….rip off.
Iain Murray My heart doesn't bleed for you.
@@stephencullen9072 Didn't ask you to. I'm only talking small amounts, only a few hundred quid - just highlighting the speed in which it went from £7 to 10p a share for some perspective. I was branch staff, not working in the city.
@@Tusker1970 Sort of. They bailed them out and this was the equivalent of 42p a share (or £4.20 with the consolidation) for the amount they obtained. The alternative to a complete collapse of the banking sector, so was actually cheap. I still don't understand why Gideon sold a load of them for half the value they got them for. Entirely possibe that in the next few years as they return to full profitability that the taxpayer could actually turn a profit.
I am really worried about the current bank crisis. If a bank as big as RBS almost collapse, I fear for a lot more. I know a friend who is running a high-growth startup, and was badly hit by the bank run. I have pulled out more than $340k from my bank. After all, the FDIC covers only up to$250,000, and the implosion could have bad effect. Looking to invest into the stock market now. Does anyone know how I could go about it?
We underestimate the fact that banks are corporate entities also governed by greed. Since 2020, the banks have been over-leveraging their assets, which was one of the reasons for SVB's implosion. I have never been okay with keeping much money in the bank. I simply invest through my financial advisor, collect my profits, which I then spend.
I have learned to not trust corporations. I was badly hit by the '08 financial crisis. Since 2019, I've just been focused on investing through a financial advisor, and it has been paying off, and I'm never going back to banks full time.
This sounds really interesting. I've been thinking of pulling out my money too. Could you recommend who your advisor is? I could really use some help.
Vivian appears to possess a strong grasp of her field. Upon perusing her online page, I reviewed her credentials, educational history, and qualifications, which were all quite impressive. As a fiduciary who prioritizes my best interests, I proceeded to schedule a meeting with her.
This is the most complex scam advertising I've ever seen
It is interesting to me that in the US, people think "government bailout" but never link that back to the taxpayer. In the UK, they always at least acknowledge the tax payers as government funders. Great video- I didn't know about this banking scandal before. Thanks for posting!
That just isn't true at all. Every time spending is criticized in government, the phrases "government spending" and "taxpayer money" are inextricably linked.
However in the US, the fact it was the epicenter of the subprime crisis meant that more people directly lost their homes when the market crashed, rather than simply losing their job or having to watch big banks and financial institutions be bailed out. The US also bailed out its airlines and car manufacturers.
Oh BELIEVE ME, we are keenly aware
Where are you getting that idea from? The entire Occupy Wall St movement stemmed from that understanding
During the 2008 crisis and the years following it there was definitely acknowledgement of the tax payers being the funders behind the bailouts. It’s the reason there was such immense outrage when the banks were given billions of dollars in government money with no conditions attached to how they had to use the money and then everyone saw them paying out bonuses to their executives and quickly becoming immensely profitable while the tax payers continued to struggle. There was no lack of knowledge of where that money came from.
The issue with the bailouts was how the banks handled the funds. The banks were given the funds to keep lending open for consumers but the banks held the money, continued to not lend out money, and when they did spend the money they usually used it to invest in things rather than extend credit like they were supposed to. And of course paid out bonuses while tax payers were getting shafted. Bailing out the industries they did was needed as realistically if they’d all been allowed to fail it really would have been catastrophic but it’d hard to accept that when those companies hold the money tight and allow customers to struggle. And of course tax payers didn’t get bail outs or to keep their homes. And nobody was punished.
One more comment, I can remember the old bank of Scotland, I had my first account there at the beginning on the 1980s they were enterprising efficient and courteous, a great firm. A lot of the old staff must be appalled.
Bank of Scotland and Royal Bank of Scotland are two totally different companies and always were.
@@warringtonminge4167 yes I know
RBS directors made sure they still got their gold plated pension pots and bonuses meanwhile the taxpayer and ordinary shareholders suffered.
We should still go after them.
Tale as old as time, sad how the Government propped them up and failed to support millions who lost their homes and life savings.
I disagree with you. Your pension is a contract just like every other pension. The CDO's which bankrupted the banks were also contracts....if they had to be paid, then so have pensions;. I detest people like Fred the Shred (laughable ) but he negotiated his package just like you or I.....now if those that appointed them made their pensions related to the long terms performance of the banks under their tenure...that would seem to be a fairer situation....but these people protest that nobody can do their jobs....which is the madness of it all because at the beginning of the documentary it spoke of people who had no banking experience being hired for top jobs and doing very well....and lets remember FG was an accountant, not a banker.....so whoever put his renumeration package together should be looked at.....
Fred like most accountants knew the cost of everything and the value of nothing. Never a good CEO competency.
Friend's uncle used to work with Goodwin in the early 80s at what's now Deloitte. His assessment of Goodwin from those days was quite similar to yours - very good at what he did, but not really suited to much else. Also had no concept of failure and genuinely couldn't foresee any downside.
He would have absolutely excelled in his role and maybe made a good CFO or Chief Accountant - but he had the wrong mentality for CEO and tried to make RBS do things it just wasn't geared up for.
Yup, that's usually my impression of them too. But hey, Dick Fuld wasn't an accountant, and Lehman was worse.
Taking risks without taking risk (i.e., through other people's lives and livelihood) seems to be the model for such people. No one should have let this happen, yet it perpetuates today. No government should reward catastrophic failure. When banks and governments work together like this the people suffer.
The queen annulled Fred's knighthood, but he avoided prison.
Klaus, Thats a pity
He avoided prison because everything happened 100% within the law. Nothing about what happened at RBS was illegal, there was no evidence of corruption, fraud, theft, book cooking or anything else. The business was completely legitimate - just badly managed and caught with its pants down. Many other perfectly legit financial institutions came a cropper in 2008 for the very same reason. Pure incompetence and bad management for the most part isn't illegal.
There were also the _very naughty_ institutions like Bernie Madoff etc. who were also ruined by the 2008 crisis, but that's another story entirely.
Just like in the US, no one went to jail over the 2008 debacle. It continues now into the future as terrible inflation may yet break us.
There was a chart showing that RBS could have purchased all of the leading investment banks in 2009 (Morgan Stanley, Goldman Sachs, Merrils) for what RBS paid for ABN Ambro in 2007
The Dutch have been doing business for a very long time and gave the Scots a hiding with the Amro deal.
Even though ABN sold the US assets that RBS valued. Fred the Muppet offered even more to buy them, rather than lose ABN to Barclays! 😬 Their motto, "Make it happen" must've been Kwasi Kwarteng's business model to UK growth! 🤦♂️
Im Dutch and bn amro is the bank i trust the least and hate the most.
Barclays turned down Lehman when Lehman was going bang. Firesale purchase, in other words. The Brit government stepped in to nix the deal. It's not that Eurobanks don't understand "The American Way" of investment banking - it's that it exceeds the inherent role of banks. Raising capital by acquisition, showing this as assets and future acquisitions as prospects isn't the right way to grow your business because banking is banking and that doesn't mean that banks know how to assess or manage these acquisitions. It's created a "Sharkpond-for-the-sake-of-it" effect where the only way to survive is to grow by acquisition or be gobbled up and all the board sacked. This drives acquiring duff stuff and it's not only banks or financial institutions that catch cold doing this but in the case of these, they've been creative in making and hiding stuff such as sub-prime to amortise bad buys until - kerblooey. All of this is the result of the deregulation that allowed banks to leverage assets/deposits to underwrite huge deals far too far into the future. This kind of thing was traditionally done by government bonds rather than the commercial sector. Todays major example is the tec sector where "due diligence" on (say) "Napster" simply isn't possible and banks have no business in there at all. It's too big and too important to ignore yet the absorption of start-up losses is vast and long and is really only financeable by stocks and shares that then take priority over the idea that launched them. Since many tec start ups fail anyway, we have a breeding ground rather like a lake full of malaria waiting for summer - it's hugely toxic.
It works this way - if you kick a dog every day, one day it will bite you.
@@WiiNV I think Kwarteng whizzed up his budget overnight using computer modelling to get the job done for his boss - who appeared to think that you can best drive a car by having the brake and the throttle to the floor at the same time.
It has overtones of Hancock continually droning on about the covid hand-held device "test, track and trace" app that was never, ever going to work. Both look like the work of "Face down" types that bump into you on the pavement.
What really agreaves me is we bail them out yet I know peaple who have had bank accounts frozen where you can't get your money out or debits paid paid to creditor's but you never find out why driven to bankruptcy by and possibly suicidal thoughts by those who have had massive bale outs then still keep there gold plated pay offs it stinks
Gordon Gekko is right on corporate bureaucrats with their golden parachute
🤘
What astounds me is that the SNP under Salmond and Sturgeon appear never to have given a second's thought to what would have been the consequences for Scotland if it had been independent when this happened. It would have been obliterated. The SNP is driven by the same hubris and utter lack of realism as RBS and their voters are bovinely clueless.
Donald ,well said
Aye,or the pandemic..and they based their economic plan on oil...then it went to -3 cents a barrel.. people were being paid to take it away 🙄
While that is true, what is to say they would have following Gordon browns setting up of the FSA, there would undoubtingly have been different rules due to exposure. As Brown himself said, "We didn't understand how risk was spread across the system, we didn't understand the entanglements of different institutions with the other and we didn't understand even though we talked about it just how global things were, including a shadow banking system as well as a banking system." Now thats not to say they would have not cocked it up anyway. But to say the same set of circumstances would have occurred is a stretch in my opinion.
I don't think so. Iceland was, as you ,say "obliterated", remember Iceland Bank. The korna lost HALF its value but today the country is a popular tourist attraction and making money again from fishery, pharmaceuticals etc.
@@Alex-pr6zv one in three of the Icelandic working population don't work for the government,they don't have Scotland's junky epidemic or predilection for banning everything...and they benefit from geothermal energy and control of their own fish industry..not sure how much they rely on Danish state but certainly don't resent it like Scots do the English.
I was a RBS customer until today, after 40 years they closed my highly solvant account (which would become even more solvant over the next few months). During they heyday of RBS I was impressed by their high levels of customer service. But since the Government intervention their service has been absolutely abysmal. Nevertheless, the crisis they caused also caused me to lose my businesses and livlihood, and I have never really earned any money since.
Sad
oh wow, on paper the moneys just seems like numbers but the effect is real it impacted a fuck ton of people just because some people in power just took it for themselves
So to here that. I know a lot of people who's lives and credit was destroyed with the likes of RBS and Northern Rock at the time. Sad really
@@TradingCoachUK In North America =/ We have another Rock called #BlackRock that's telling its investors to triple their investment in mainland-China... *which is weird when public data is showing multiple signs of Housing-Bubble Crisis that Japan faced decades ago and it can even be worse than the 2008 financial crisis.
Not really sure what the regulator is doing back then and especially now T____T like FTX or the massive pandemic spending; very few penalties are issued to those who make off with millions/billions while the vast majority of the loss is nationalized =/
*Unless its an attempt to pump money in so they can get their own money out without facing too much loss... which is not an uncommon tactic used by business cooperations.
@@michaelwang6125 what you find with companies like Blackrock is they have tons of money they have to allocate or direct their investors to allocate to keep the assets under management. They probably feel with all the economic uncertainty and inflation woes in the west that emerging markets / China is where the money will flow. On the emerging market front they may look at far wast Asia rather than Latin America.
The 2 common factors in the failure of a financial institution. Abundant Vanity and Lack of Sanity. These crimes have 10's of millions of victims, but the criminals never face prosecution.
Why the financial system never really learns is that management of systems never really gets true punishment for their evil deeds so other financial managers sees there is no consequence of their actions.
New discount the GREED factor. CHEERS from AUSTRALIA.
How is buying and selling shares evil? If you bought share and they fell in value have you been evil or is that just they way the story played out....just business. It's no different in banks...except they are not businessmen any more than you or I....in fact they are less of a businessman than you or I as they do not use their own money. If someone told you to buy and sell CDO and you'd make,, let's say 15%, you'd do it all day long as would I. When the trade lost money, would your actions be evil or that you didn't understand that they were laced with garbage....because nobody else did. Is it the fault of the person(s) who packaged the CDO with toxic debt mixing the good with the bad or the regulator who should have understood CDO's...because that's their job.....now were getting to the core of the issue in my opinion. What if they didn't understand CDO's...because most everyone didn't...are they evil? Or do you just pick someone in charge and blame them?? Does that make them evil and worthy of prison? These bankers are very unlikeable people especially FG.....they treat others horribly...is that worthy of jail or a bloody nose? I firmly believe that the latter is more appropriate...because when people think they can say anything, do anything and that you or I simply have to grin and bear it....thats where the problems start....I might be an idealist but tugging your forelock and going weak at the knees because you're dealing with someone in high office and allowing them to behave with utter contempt for other is the root of much problems in the world...especially banking/business. And Fred the Shred seemed to get away with treating people terribly.....I imagine anyone in his way was simply fired because they stood in the way of the strategy that made so much money to begin with....and people allowed him to get away with that.....
£350,000 a year pension for failure beyond belief.
It was originally 703,000 a year
@@deusvultpictures6550oh no he's so poor now
Lesson learnt - dont give taxpayers money to greedy bankers unless the taxpayer gets compensated first with bonuses. Did anyone ask the taxpayer last time around if they wanted to pay for the bankers risk taking?
Nobody cares about the taxpayers, politicians work for the bankers not the people,
Which was the case.
Vast, vast, vast majority of the "billions spent bailing out the banks" waa just liquidity or guarantees. All repaid in short time.
Only 2 banks was actual money. Both these had bonus pools much less than other's whilst taxpayer shareholders. We've made profit on one, will have lost money on other.
I can’t believe that someone can be knighted for “contribution to banking”. The UK has really become a joke. I feel bad for the ordinary folks living there.
Fred Goodwin was stripped of his knighthood in 2012. He is plain Mr.
The idea of knighting anyone is itself a joke. I have no idea why the UK still harbors such elitism.
You now can’t get a mortgage unless you put down about a quarter value of the house as a deposit, and people wonder why. These thieves changed the way money was loaned and not for the good either.
That’s wild. I’m assuming this is in the UK. In the US there are various types of mortgages that allow for lower down payments. But generally you can do as low as 5% but have to carry insurance on the mortgage until you pay down 20% of the principal of the loan.
RBS was one of five that abusing the system and the changes made have not plugged the gap.
It was a very bad decision to remove the Glass-Steagall Act in the late 1990s, which led to the spectacular failure of huge banks during the financial crisis of 2007-2008. To prevent another disaster, Dodd-Frank and this statute both need to be reestablished right away.
It would not be a bad idea to place economic regulations under constitutional law.
Every once in a while, a government comes along, irresponsibly deregulates the industry, leading to a bubble which swallows the savings and/or investments of millions of people.
Fred the Shred. Right. Maybe his name should have been Fred Ponzi because that's exactly what he did and shredded the RBS.
Ponzi was imprisoned for those antics.
The expression "shit rolls downhill" explains a lot about RBS's treatment of its customers and clients
Banking qualifications? The ability to lie, cheat and steal, all with a smile on your face. Banks have funded misery for all of their time.
You're confused
@@afgor1088 you are
Had the displeasure to work for this company back in 2016, you know, 8 years after the culture and working practices damn as well nearly crippled the country. I lasted six weeks...they hadn't changed at all, the methods of operating were still, as this documentary put it, "a monster of which we had little control"....I wish I'd seen this before I applied, tainted the financial industry for me to this day....and clearly for other people for alot longer than that.
Narcissist's are very successful running big companies. They are not emotionally unvested at all. Very much like powerful countries, they have interests not friends.
Strange . Back in the 70s I was a money broker and at that time RBS was possibly the most respected bank in the UK farst
I worked at RBS in Dundas Street. Twice. It was utter chaos and a highly politicized workforce. I knew of I.T. contractors, that had made over 1 Million GBP having worked there for a decade, because they had established shmoozing relationships with permanent managers.
An IT contractor that doesn't make 100k per year shouldn't be in IT let alone contracting. How much does it cost to pay a good permie IT person over 10 years??...as a 20 year contractor I guarantee you there isn't much difference.
@@james09995 I remember my Dad making £1000 a day as a contractor in the early '90s - banks, big pharma and Insurance companies. I remember him showing me his invoice to American Express that was an 18 month contract on £750 a day in 1991!
Questions: where did the £billions come from to to prop up the banking system? And is this why austerity then followed so that the UK government could balance the books?
Very good question.
It was basically a loan from tax payers. Public debt went up and the new conservative government cut spending in order to bring borrowing down. The problem is that the cuts stymied investment, so most of our public services began to decline in quality, particularly social protection and infrastructure, which further hindered economic growth. The government eventually made back all the money it lent, with interest, but none of it made its way back to the tax payers.
@aaron adams similar occurred in the US regarding the government making back what they put into the bailout. In the US the government bought the troubled assets from the banks essentially and held the investments through the recovery and eventually profited from it. Many in the US don’t know that really though. We didn’t do much of any true spending cuts to compensate though - the US has only had a balanced budget a very few years in history.
1 hour video. More content the better. Great work as always
Alastair Darling is wrong that there was no alternative - the UK clearing bank was a separate legal entity and could have been saved by the tax payer at much reduced cost with the RBS group going into liquidation- essentially;the UK taxpayer bailed out US investors in junk US assets. Also John Cummings carried on as Treasurer for another 10 years.
Should be locked up along with those Northern Rock lot.
And did the pay and pensions of all these executives go down drastically like they should have? I see at 55:00 they did not. HORRIBLE
there's additional banks that are now losing their value and their stock is plummeting right now. Now honestly hopefully this trend doesn't continue but if it does we could be looking at one of the biggest recessions in America history, hopefully not as big as a Great Depression but it could be a pretty recession, so everybody save your money, you know try to make sure you have multiple streams of income and stay prepared
As dollar is losing value so as other countries currencies values are depreciating gradually. Is time to start making use of Bitcoin now
Agreed, instead of panic or following a hearsay, I simply adopted the service of an advisor early 2020 amid covid-outbreak, and so far, I've attained my most measurable financial milestone of $650k after subsequent investments.
@@shana.ball3nice! once you hit a big milestone, the next comes easier.. who is your advisor please, if you don't mind me asking?
Excellent… thank you🙏🙏🙏
The situation was rather worse than publicised. RBS bought Natwest, Lloyds bought TSB. Everyone wanted to be the biggest, we had gone through a decade of takeovers and mergers and it had reached a fever pitch. Natwest was a better bank, better IT and internal structures, but had started investing in a lot of high risk non banking projects. same with TSB, bigger than Lloyds. The IT systems following the mergers were a nightmare. The Lloyds and legacy TSB systems were running in tandem and that created all sorts of problems. Lloyds spent a fortune on trying to merge them, just throwing money at the project, but an inefficient operation. RBS was living in a delusion of grandeur, it didn't have the technical knowledge or resources to run a large scale operation.
The Government actually downplayed the bailouts at the time, this whole country would have been thrown into a financial catastrophe if they hadn't. No cash machines, bank doors locked, no salaries paid etc. I have told people what was going on but they never really believed me, this documentary verifies what I was saying. We were within hours of economic destruction.
I once banked with the TSB. My first bank, despite being employed and having regular deposits into my account when I applied for a loan to purchase a car I was declined. I went to the Midland Bank who I didn't bank with and was given the loan provided I switched banks. I was granted a meeting with the TSB Branch manager who told me to my face he wasn't prepared to lend any money to me. The TSB account was closed and I moved to the Midland. 5 years later I bought the house next to the Branch Manager who was shocked to see me. A year after that he got implicated in a fraud.
Lloyd's ended up owning Halifax-Bank Of Scotland and TSB, they were forced to sell TSB because it was a threat to competition
Scottish people are known to be frugal, yet this particular scot was extravagant…. with other peoples money
Known to be benefit cheats
I remember that day vividly. Walked into work at RBS to find my line manager pleading me to get on the phones because the bank nearly went under and all the customers want to withdraw their money.
RBS (and all the other banks) should NEVER have been bailed out by public funds. It should have been allowed to go bust naturally. It is NOT the governments work to buy private firms to prop them up, otherwise banks fail on purpose and swindle the public purse.
There should have been a "people's" quantitative easing (if it was really necessary!), not bail out the greedy banks. Banks SHOULD fail if managed poorly, people should not. People invest in banks if they accept the risk - that should work or fail naturally.
tell that to gordon brown n a darling
@@patrickchan2503 Well - to be totally clear, tell it to those who voted those two in (apparently nobody did?!)
Lol. The movie "the Big Short" clearly plagiarised the moment of the share prices falling during Goidwins presentation for an identical scene within the film, albeit in a different setting!
Mathewson and his team increased profits to £800m, and none of his team had ANY banking qualifications or experience in banking. I think that demonstrates that you don’t need a certificate to prove you can make real change. You just need good minds, common sense and the desire to change.
Or, alternatively, be ruthless enough to make the ones with the know-how do your bidding. Banking is like the mafia, just in the public domain.
But Mathewson hired Goodwin and always stood by him.
This is an amazingly well made documentary, thoroughly enjoyed the professional quality. May I ask how long it took you to make it?
@Aarron It’s from the BBC. They do make great documentaries.
This is why the BBC make the best documentaries out there
Where are my RBS shares. Didn't everyone get shares for bailing them out?
I always wondered why the ex RBS banker got shot on his doorstep in Nairn was he going to go to press with what he learned.
For one minute this could have been Barclays because they were both bidding for ABM Amro, which had the worst credit trading department in the world. It literally had ex strippers as desk support.
Very informative, Also have a look at 46.24, Should give you a feeling on how these people saw the rest of us.
Very good documentary.
We the taxpayer are still paying for RBS CEO failures. It is not just Fred, RBS CEO and Execs paid themselves £1 Million each in 2010 which equated to £1 Billion in Exec hand outs, while operating at £1.6 Billion in the red. This is 2 years later. As a result of this, the Chancellor placed a very high cap on bonuses and protected peoples current accounts, as if the government did not bail out, Millions of people would have no money in their current account (nothing at the cashpoint) for food and rent. Well, Sunak just removed this to ensure more people like Fred can be attracted to work for banks and make loads of money, while bankrupting us. Plus, Sunak is also allowing banks to use everyone's money in there savings and current accounts for BIT COIN investing. This is quoted as stimulating growth, for who? Fred and the CEO's should have been prosecuted, but as they said, you cannot as they are not accountants and have no professional indemnity. Will it happen again, almost certainly yes and bigger. I think we need to ask, if everyone the public, suddenly had no money for anything, what would happen? yes, no contactless, no cash, no purchase for food, water, heat, fuel, etc..... Fred and the CEOs know this and hold us to this threat. Has this happened before in history? Yes, go and research it.
The RBS stock price was only missing the sound of Stuka siren in 2008.
At the same time this was all happening they were attempting to move into Canada. They had RBS commercials playing all the time. They stopped suddenly! This is no different than companies being two big to fail. The US giving a bail out to automotive companies for instance.
They are called banksters. A criminal organization living in luxury while we live in poverty. Time for a change.
"Save the economy from the banks".
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rbs confidently opened for business on the main street in Selma, AL, back when. i wondered back then--and found out only a fewyears later about the mess.............
Fred Goodwin just cared about himself and nothing else
Well that was an excellent documentary, I will be unpopular for saying this but a country needs a dependable competent ruling class and establishment, experiments like Nick Leeson the ex council house trader at Barings bank, and Fred the shred, a wee boy from Paisley, sometimes make me wish for the old undemocratic days where top people often thought about their reputation and old fashioned words like honour. I was so amused to hear Gordon Brown say that boom and bust has been abolished, and he was I believe a former lecturer at Edinburgh! I think The press were unfair to Brown but that comment made me wince at the time, and now just smile. By the way Fred was once photographed wearing a country suit with white socks, says it all, no taste,no standards, and a dishonest man. When you think about Scotland’s great history, and how it did so much to develop modern banking it is ironic. Mr Darling always comes over well. A person of quality.
That is an absurd statement. You have given two examples of working class people who rose to power within banking and are very much outliers considering their background, so by your logic the majority of the worlds banks are run by the ruling class or elites, so why did they also allow the GFP to happen and have their banks crash and be rescued by the government? The fact that these people shared a mindset is a major reason as to why they traded rubbish loans and made reckless investments as they think themselves untouchable and have no grasp on the consequences of their failures as they are not the ones who suffer them.Those born into great power and wealth aren’t honourable simply because of their happenstance of birth, it isn’t honourable to hoard vast fortunes whilst the majority struggle to provide basic need and it isn’t honourable to send the working classes to die in wars that benefit their portfolios. The system in Britain is still very much in control of these “ruling classes” and was at the time of the banking crisis, they forfeited their reputation and honour in exchange for extreme returns on their investments
We think of oligarchs as being from Russia, however, it would seem that we have quite a few British ones too!
Britain is the past master of it, We are not called " John Bull" for nothing!
When Robert Peston was on TV a lot I never noticed he looked down to the left so often, like he does here. It's amusing to watch - NLP says dropping eyes to the left after every statement is a sign the speaker is having an internal convo - usuallly about what he's going to say next. Not that thrilling, but he does it a lot more than the others
There has been much misinformation about that time and this is no exception. Yes Goodwin was ruthless and yes RBS was an arrogant organisation that thought it could do no wrong and was caught out. Previous RBS acquisitions had always been done after careful scrutiny and under guidance from some of the biggest accountants and international financial experts. Unfortunately in 2008 it was the perfect storm and the fact they chose an acquisition (ABN AMRO) which was unknowingly at the time hugely exposed to the sub prime scandal that had been developing (but hidden) in the USA for many months previously and the lack of due diligence was their undoing. While the lack of financial supervision of the sector both here and especially in the USA by the FSA was a major factor the real culprits were Thatcher and Reagan who dismantled these for their preferred 'Self regulation' which proved fatal. The insatiable greed that developed afterwards in the sector by private speculators was the reason for the downfall.
Er what. Thatcher and Reagan?
It was Labour that said to the banks set their own reserve ratios. Removing political oversight on the Bank of England so they could work for the bankers not the politicians. Changing the inflation reporting so they excluded housing costs from inflation decoupling house prices from wages and subsequently inflating house prices. The blood of 2008 is on Tony Blair and Gordon Browns’s hands not Thatcher and Reagan’s.
Given the many comments on this it's interesting to note what you say.
You are correct, but I'd also comment on the sale of the jewel in the ABN crown, LaSalle Bank, from under RBS's feet. I believe this was a major loss to RBS and their ambitions in the US, but by that time RBS was fully committed to the purchase of ABN and couldn't/wouldn't back down for fear of looking weaker than Barclays.
A brilliant move by Barclays, some would say. Others might say that Barclays and ABN colluded to screw RBS.
Along with that, the US banking system (RBS were forced more or less at gunpoint to bail out Lehman Bros. before they eventually went bust) and CDO's as you point out were in large part to blame for what was a general collapse in markets.
As a postscript, Santander, with whom RBS had strong links, came out of the whole mess quite nicely.
The one common theme in all those interviewed is that absolutely no one in the bank, government, bank of england, finance, markets etc had any consideration for staff, customers or tax payers. They all took the praise and money on the way up and the tax payer sorts out the mess on the way down. Mega growth always leads to trouble. That's why regulations came in in the first place. Deregulation will always lead to crisis. Just a mater of time.
Board of Directors and Regulators could have done a much better job at forcing bank to manage their risk. Letting things get to the point a phone call to chancellor of the Exchequer to say we’re out of money by end of day is mad. Hubris!
PS - When the US Treasury implemented a similar program for US banks, I was sick. Not to mention lack of clawbacks on bonuses, etc.
Part of how they got away with bonuses and no restrictions on the bailout money in the US was because they couldn’t get all the banks to take the money if they did. They were insistent on every bank tsking money rather than just those who needed it as they felt if only some of the banks got money then consumers would be worried and run those banks since it would indicate those banks were in trouble. So they forced all the banks to take money to prevent that perception but banks who felt they didn’t need money weren’t going to take it if they had restrictions. So they didn’t put any in. And the banks took that money and fucked everyone over as they’re apt to di.
A typical bank executive, nasty, ambitious, and where staff are treated like liabilities and not assets.
Fred lives off a very juicy pension pot of 450,000 pounds a year. Impressive award for someone who nearly bankrupted the UK.
And no country other than Iceland has held these People to Account
Imagine this happened to an Independent Scotland.
Love how they grew by cutting everything (I am sure including compensation for workers or at least limiting it) just so they could in the end buy jets and fancy HQ....
@18:10 Andrew Bailey is the epitome of the "understated Brit". The man spoke about lending 25 billion like has was talking about what he ate for lunch.
Trust nobody with your money. Keep needed minimum amount in your bank. Other in assets like rental real estate.
Diversify and spread your risks is standard advice.
Their customer service is dated today. I tried opening an account with them and they wanted a good week and an in-person visit. Went to the Santander site and had my debit card a few days later
They’re just checking that it isn’t Fred himself not trying to open an account, hence the in person request.
0:18 why not use other forms of money like say E money that cost less than procurement cost of cash
16:50 markets unwilling to lend but why not emergency liquidity assistence, liquidity loans
'The gain, over decades, was privatised to the Bankers, and the pain was nationalised to the Country.' The line that says it all, and guess who just got the cap on their bonuses scrapped?
CEOs are generally managers, not innovators, they inherit established firms that just have inertia, they don't add much value but they sure can cock it up.
You would have liked to think that we learned our lesson from these mistakes. However, Rishi has deregulated the banks again to help his mates do this again.
That's weird, putting an engineer on the corporate team for a bank? Boeing should take note.