Unexpected fall-out of bonus reductions

I saw in the paper this morning an, to me, unexpected fall-out of the slump in City bonuses: a number of divorcees are approaching their solicitors/ ex-spouses with a request to renegotiate divorce settlements. These of course have been negotiated with the expectation of solid bonuses that are now not forthcoming.

This though is probably overshadowed by the expected but, even so, scary record loss reported by RBS: £24.1 billion! This is the worst business loss in UK history – those record numbers just seem to pop up all over the place these days. £16.2 billion was caused by “must have” ABN Amro, this certainly have proved a costly decision and made despite several warnings. (I wonder why the word ‘irresponsible’ keeps popping up in the back of my head.) The plans are that the taxpayers are to cough up with another £25.5 billion and in return we get all the toxic waste from RBS. Hmmm….

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The 44th “Mr President”

As I write this I have one eye on the live coverage on the BBC of the inauguration of Barack Obama.  So many people and such celebrations. The oath taking is in progress and you can almost see people’s lips move in sync with the oaths.  You can also see the nerves kicking in, as Mr Obama has to be reminded of the words.  And now the citizens of the United States of America have their new president.   So much hope is attached to Mr Obama’s presidency; time will show how he manages.

Last night and this morning I also had an eye on the share price of RBS.  After the predictions of a record loss RBS shares plunged 67% yesterday.  They have moved up a bit today but investors remain nervous because other UK banks have dropped as well.  The record loss to a large extent stems from the sub-prime market and the acquisition of ABN Amro.  An acquisition that took place despite much concern about the profitability of this.