RBS has raised job cuts total by 400, MPs told
Friday 20 March 2009
The deputy chief executive of Royal Bank of Scotland told MPs yesterday that the Government-controlled bank was set to cut 2,700 UK jobs, 400 more than RBS had previously announced.
The extra losses disclosed by Gordon Pell will be at RBS Wealth and RBS International. Mr Pell caused confusion with his comments to the House of Commons' Scottish Affairs Committee by saying that 260 jobs would go in Scotland, a figure that RBS was later forced to admit was not definite. Mr Pell, who was promoted in the wake of Sir Fred Goodwin's departure from the bank, said he believed the former RBS chief executive's reputation would partly be restored. Defending Sir Fred was "like Mission Impossible", Mr Pell said, but he claimed Sir Fred made a "huge contribution" to Scotland.
But he told the MPs that the uproar about Sir Fred's £16.6m pension was sapping staff morale. "I don't want them to have to spend the first three pages of every newspaper reading about Fred's pension and then what we're actually doing positively comes in on page four," Mr Pell said.
Mr Pell weighed into the debate about controls on mortgage lending, telling the MPs that 100 per cent home loans were "immoral" and amounted to putting "a loaded gun in the hands of someone who can't pay".
Despite its huge losses from investment banking, RBS's retail bank was run relatively prudently under Mr Pell and maintained a small share of the mortgage market.
After indicating earlier this year that it might consider limiting mortgage lending multiples, the FSA's chairman, Lord Turner, left the matter open in his regulatory review of banking published on Wednedsay.
Mr Pell admitted that RBS's takeover of ABN Amro was a mistake and said that up to 60 per cent of RBS's record £24bn loss last year was down to the deal. "The one distinguishing feature in the catalogue of shame, in which all bankers sit at the moment, is that while that was going on at a crucial moment in history and a crucial moment in terms of our capital position, we embarked on the acquisition of ABN Amro," he said.
International Women's Day 2014: The shocking statistics that show why it is still so important
Singapore sting: Sky-high prices are pushing locals to the edge of affordability
International Women’s Day: 'When a man gives his opinion, he's a man. When a woman gives her opinion, she's a bitch' - feminist quotes from female icons to inspire you
Exclusive: New evidence links the murders of Stephen Lawrence and a private investigator
Dead woman's body found sitting in a car after six years after direct debits ran $54,000 bank account dry
Britain's top vet sparks controversy with call for ban on slashing animals' throats in 'ritual' slaughters for halal and kosher meat products
Ukraine crisis: Russia dismisses '3am ultimatum' as 'total nonsense'
If you're horrified by a flame-roasted dog, you should be shocked at a hog roast
Poor 'live like animals' says Boris's privately educated sister after going on 'poverty safari'
White people become less racist just by moving to more diverse areas, study finds
Exclusive: Impact of immigrants on British workers ‘negligible’
- 1 International Women's Day 2014: The shocking statistics that show why it is still so important
- 2 Orgasm machine to deliver climax at the push of a button
- 3 Singapore sting: Sky-high prices are pushing locals to the edge of affordability
- 4 Liam Neeson turned down James Bond role because late wife Natasha Richardson said she wouldn't marry him if he took it
- 5 Dead woman's body found sitting in a car after six years after direct debits ran $54,000 bank account dry
iJobs Money & Business
£12000 per annum: Inspiring Interns: The company works with Tier 1 FTSE 100 Ba...
£32000 - £36000 per annum + generous benefits: Pro-Recruitment Group: * TAX * ...
£37000 - £40000 per annum + £20000 benefits package: Pro-Recruitment Group: **...
£30000 - £35000 per annum + generous benefits: Pro-Recruitment Group: Mixed Ta...