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£800m of bail-out cash earmarked for RBS pension schemes

More than £800m of taxpayers’ bail-out money is set to be injected into Royal Bank of Scotland’s pension schemes, which have fallen into deficit after investing in the bank’s shares.

The bank’s annual report published yesterday suggests the pension funds have lost hundreds of millions of pounds as the value of RBS shares in the portfolio slumped from £69m a year ago to £15m. The deficit of the schemes now sits at almost £2bn.

Intelligent Pensions technical director David Trenner says: “Self investment is very risky, but the RBS pension trustees can relax as the taxpayer will top up any shortfall in the fund. If only Robert Maxwell had had the same Government support when he “invested” the pension fund in the Mirror Group, he might still be with us today.”

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The ‘decisive’ moment

All I can say is it was lucky the headmaster stepped in, otherwise there could have been blood all over the playground. In terms of gang warfare, it’s not exactly up there with the Bloods and the Crips or even the Jets and the Sharks but, still, there was real scope for some badly grazed knees if the IMA hadn’t acted so decisively.

Too little, too late

Who would have thought anybody could describe a £75bn cash injection “a leap in the dark”, as it was described by Conservative Shadow Chancellor George Osborne or unfortunately as it will also be described, too little too late.

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