Inside RBS, the bank that broke Britain

Inside RBS, the bank that broke Britain 1
Inside RBS, the bank that broke Britain
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Inside RBS, the bank that broke Britain 2
Recommendations as Risk Manager
The Royal Bank of Scotland was known to be one of the biggest banks at the time of
its zenith with an asset value of about 3 million United Stated dollars with employees of
about 200,000 (Fraser, 2014). The bank had many branches and as a result, was preferred and
admired by many borrowers and investors. It is believed that its name caused anger and
resettlement in which the former CEO, Mr Fred Goodwin, is exposed as one of the
architectures of the severe financial crisis of the year 1929. Moreover, in Shredded, Ian
Fraser is revealed as one of the lifters on the lid that led to the catastrophic mistakes which in
turn brought the bank to the blink of its collapse, scrutinizing the roles that were conducted
by RBS’s managers who failed to check Goodwin’s hubris (Fraser, 2014).
The bank paid out billions of pounds in bonuses annually, and it seemed that all the
activities were geared to maximize these at all level. The bank further paid bonus on
unrealized profits, and due to the flawed risks assessments, massive profits with
accompanying bonuses were booked on the translations that turned out to generate losses.
This pertinacious culture encouraged reckless risk-taking and total disregard for the interest
of the bank, its customers and the society as a whole.
In overall, the Royal Bank of Scotland conceives profits based on fees and interest
they pose of their customers out of the business so that it could grab the underlying assets
used as security for their loans. This is probably considered as a new low and even for the
extremely greedy banking sectors. Royal Bank of Scotland is currently known to be fending
off a number of lawsuits that are associated with this behaviour (Fraser, 2014). There still
exist honest and ethical bankers around, and of course many are perceived to be running a
scam which is similar to the way Mr Goodwin was allowed to run and operate the Royal
Bank of Scotland. Bankers like “Fred the Shred” take enormous long term risks indicating