RBS to Survive

[Update: Tuesday 20th January: RBS announced a loss overnight of close on GBP 28 billion. That's the 100 quid overdraft gone then....]

Talking of turbulent times, (see previous post), the British government is set to announce another series of substantial measures tonight aimed at supporting Britain's banks to kick start the economy.

The plan includes taking an even larger stake in the Royal Bank of Scotland and a new insurance scheme to protect banks from future bad loans.

This is interesting stuff. I have an account with the Royal Bank of Scotland or rather the NatWest bit of it. Over the years, they have had occasion to query my business model. On the basis of recent events, is it safe for me to now query theirs?

Long experience says 'no'.

I guess that with the Government or rather the taxpayer now holding a majority stake, there will be more regulatory supervision at a senior level. And press releases talking about loosening up credit paths etc. etc.

At grassroots though, on Main Street, the bloody cavalry (personal customers and small business) will almost certainly have to put up more of the same.

As the sketch in the BBC's excellent Little Britain so aptly applies itself to those seeking a loan - 'The Computer says No'.

Some model.