Monday, May 2, 2011

RBS escape fate of the stupid

Jimmy Jimmy

RBS © fintag

News comments:
The death of Bin Laden is in the news and markets will be volatile. (picture of his house)

And a good time to hide news about the appalling news that the UK's lead regulator is unable to complete its report on RBS, a bank bailed out by tax payers. (telegraph)

The FSA is a regulator and has recently been fining small and helpless financial institutions like a traffic warden on speed. Pre Lehman the FSA was in the corner puffing on its spliffs as the big boys abused and exploited and burned. And now we realise the FSA was completely out of its depth. It hadn't a clue. But then anyone who knows RBS, also knows it is one of the most dysfunctional banks out there (second only to DB) and is run on spreadsheets and powerpoints so writing a report on its failures could take a lifetime.

Already the debacle is being hidden away and as the FSA is wound down, its epitaph will read "Created by a Scot, Gordon Brown, it died at the hands of a Scot (Fred Goodwin)"

Today's shorts:
Tourist killed in Pakistan (bloomberg)

Hedgies short Obama and Bernanke (telegraph)

Today's longs:
Facebook to pay off US debt (reuters)

FSA staff to be sent on "how to write reports" course.