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RBS chairman ‘surprised’ at size of bank’s fines

RBS-Building-2012-700x450.jpg

Royal Bank of Scotland’s outgoing chairman Sir Philip Hampton has admitted he did not expect the bank to be hit with £10bn in regulatory fines.

Speaking at his seventh and final annual general meeting on Tuesday, Hampton said the bank had also been surprised by the pace of the digital revolution in banking.

The FT reports Hampton told investors: “I can plainly say that we did not anticipate the nearly £10bn of regulatory fines, litigation charges and customer redress we have incurred, so far, for conduct and business failings.”

He said the scale of the conduct issues faced by RBS had “markedly” reduced its profits and value for shareholders.

RBS chief executive Ross McEwan added that shareholders would have to wait another four years for the bank to recover fully, and return to operating as a UK-focused, low-risk bank.

Earlier this month Chancellor George Osborne announced the Government would begin to sell its 80 per cent stake in RBS at a loss.

In an interview with the FT earlier this week, Hampton said he believed that without RBS’s regulatory fines, taxpayers “would be getting their money back”.

At the AGM Hampton said the bank had underestimated the digital revolution, and admitted that the shift from branches to mobile banking “frankly surprised us”.

In May RBS was fined £430m by international regulators for rigging forex markets, on top of £400m of penalties announced in November.

In February 2013 the bank was hit with £390m in fines by the FSA and US regulators for manipulating Libor.

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Comments

There are 3 comments at the moment, we would love to hear your opinion too.

  1. Gordon Sinclair 24th June 2015 at 11:48 am

    I do wonder if the fines would have been as large if the funds were not being taken by the Treasury.

  2. Given the appalling misconduct they are lucky to still be allowed to continue in business. Only radical reform and punichment for the directors responsible will truly make a difference. Try saying ‘we did the crime so we will do the time’ instead of making excuses and acting surprised.

  3. It truly beggars belief, the bubble that those supposedly ‘running’ RBS appear to live in.
    Surprised at the size of the fine? Surprised at the popularity in digital?
    How many people were surprised at last week’s latest IT failure that impacted upon thousands of RBS customers? And how many people, apart from Mr Hampton and cronies, will be surprised when RBS gets found out for its next episode in bad behaviours?
    “Goodbye unfair banking, hello RBS” is a very interesting advertising strategy.

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