RBS to shed up to 5000 jobs

Exclusive: Ex-Goldman Trader Eyes RBS Bid

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Exclusive: Ex-Goldman Trader Eyes RBS Bid

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Mark
Kleinman January 10, 2012 12:27 PM

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A former Goldman Sachs trader has emerged as an unexpected contender to buy
chunks of Royal Bank of Scotland's investment banking unit, I have learned.

Hay Tor Capital, a little-known firm headed by John Ashdown, is among a pack
of suitors circling Hoare Govett, the corporate broking business being shed by
RBS as it shrinks its investment banking operations.

As I disclosed last night, RBS will announce this week that up to 4000
additional jobs will be lost in its global banking and markets (GBM) division as
part of the restructuring.

Ashdown retired from Goldman at the end of 2010, and documents filed at
Companies House show that he established Hay Tor last year.

The firm joins Oriel Securities and Numis Securities, two established mid-cap
City brokers, among those casting their eye over Hoare Govett and other parts of
RBS's GBM operation.

Mizuho, the Japanese brokerage, Bank of China, Royal Bank of Canada and at
least one Australian lender are also examining potential offers.

Lazard, the investment bank, is running the auction, and RBS is expected to
decide whether to pursue more advanced discussions with bidders before the end
of the month.

goldman_sachs royal_bank_of_scotland john_ashdown hay_tor_capital oriel numis mizuho bank_of_china royal_bank_of_canada

RBS is being sued for wrongful dismissal by a trader over Libor rate setting.

MY BRANCH IS GOING TO BE TAKEN OVER BY SANTANDER.

Exclusive: Ex-Goldman Trader Eyes RBS Bid

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• 
  

Mark Kleinman

January 10, 2012 12:27 PM















A former Goldman Sachs trader has emerged as an unexpected
contender to buy chunks of Royal Bank of Scotland's investment banking
unit, I have learned.
Hay Tor Capital, a little-known firm headed
by John Ashdown, is among a pack of suitors circling Hoare Govett, the
corporate broking business being shed by RBS as it shrinks its
investment banking operations.
As I disclosed last night, RBS will
announce this week that up to 4000 additional jobs will be lost in its
global banking and markets (GBM) division as part of the restructuring.
Ashdown
retired from Goldman at the end of 2010, and documents filed at
Companies House show that he established Hay Tor last year.
The
firm joins Oriel Securities and Numis Securities, two established
mid-cap City brokers, among those casting their eye over Hoare Govett
and other parts of RBS's GBM operation.
Mizuho, the Japanese
brokerage, Bank of China, Royal Bank of Canada and at least one
Australian lender are also examining potential offers.
Lazard, the
investment bank, is running the auction, and RBS is expected to decide
whether to pursue more advanced discussions with bidders before the end
of the month.


Comments


Posted by: martyjg from north east on January 10, 2012 6:09 PM

Mark, could you find out if Hourican has any ties with the companies vying for parts of RBS? These lot are all pals I'm sure!

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Posted by: Nuxgael on January 10, 2012 9:44 PM

Is
there anything that Goldman Sachs ex-employees are not in? Jesus said
the poor would inherit the Earth but he never said that Goldman Sachs
would? They are in banks, in governments etc etc... I just hope that
when they leave Goldman Sachs they make a clean cut...

Your Comments

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The latest figure for shedding jobs is 3,500 and Chairman Hester is selling everything so that in the end RBS will be just a retail bank. Apparently it is in
bad shape and trading at a discount of 40%.

Interestingly Alex Salmond who is currently seeking a referendum was asked what he would do about RBS because the Bank belongs to Scotland. He
was quick enough to claim the Oil but not the Bank.

Exclusive: RBS Investors Urge Bonus Defiance

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Mark Kleinman

January 19, 2012 12:20 PM

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Leading City investors in Royal Bank of Scotland (RBS) are urging
its directors to defy political pressure over bankers’ pay by awarding
Stephen Hester, its chief executive, a “substantial” bonus for 2011, I
have learned.
Penny Hughes, the non-executive director who chairs
RBS’s remuneration committee, has begun meeting shareholders ahead of
what will be the most contentious pay round since the bank (and the
wider industry) was rescued by British taxpayers in 2008.
And the
slightly contrarian message from many of those investors is that they
believe that Hester should be rewarded for shrinking the bank’s balance
sheet, overseeing its broader restructuring and steering it through the
worsening Eurozone crisis.
That’s despite the slump in RBS’s share price during 2011, which saw billions of pounds wiped off the bank’s value.
“The
downside risk of him [Hester] leaving is immeasurably greater than the
cost of rewarding him for the job he did last year,” one top five RBS
shareholder told me.
Another said: “The share price performance
has been dire, but it is in line with many other bank stocks, and in the
case of RBS we believe that ‘success’ is measured on a much wider
spectrum than that of the share price. Hester is doing a good job.”
Of
course, this is by no means a universal view; there are some investors
who believe that the pain they have suffered should be reflected in the
awards made to senior management.
That perspective has been
reinforced by the decision last week of Antonio Horta-Osorio, Hester’s
counterpart at Lloyds Banking Group, to forego any bonus that he would
have been awarded for last year (which would have inevitably been
diminished by his two month leave of absence).
David Cameron has
just added his thoughts on Hester’s bonus by saying that any payout will
inevitably be lower than last year’s £2.04m.
It goes without
saying that the most important shareholder response will be from UK
Financial Investments, which manages the taxpayer’s 83 per cent stake in
RBS.
My understanding from a source close to UKFI is that while
no formal discussion has taken place yet between it and RBS (or Lloyds)
about 2011 remuneration, it is not in principle opposed to Hester taking
a bonus.
So if UKFI endorses a proposal to pay Hester a bonus,
which would be entirely in deferred shares, it would be stunning if it
did not then happen, even if senior ministers bemoan the headache that
it will cause them.
I should also say that while Hughes has begun
canvassing the views of leading RBS investors about remuneration, she
has not presented any proposals to them, and will not do so until next
month.
The truculent tone from some City institutions underlines
the nuances in the debate over boardroom pay just days ahead of the
Government outlining its plans to curb ‘payments for failure’ and
improve the transparency of directors’ remuneration. As I revealed
earlier this week, major City institutions told Whitehall officials this
week that proposals to
Of course, it’s legitimate to question
whether Hester really would quit if he waived his annual bonus for the
third time in four years. People close to him say he has no intention of
resigning during the protracted turnaround of the bank he is overseeing
This
morning’s Financial Times quoted a senior banker as saying that the RBS
board was “unequivocal and unanimous” in backing Hester’s entitlement
to a bonus.
The story prompted this reaction from Sir Philip
Hampton, RBS’s chairman, who said: “The reports in the media this
morning are both inaccurate and premature. Neither the Remuneration
Committee nor the Board has discussed the position on the bonus for our
CEO for 2011 at this stage. Any suggestion to the contrary is therefore
untrue.
The Board will act in accordance with its usual governance
timetable and consider Executive remuneration following conclusion of
the shareholder consultation.”
The prime minister also called the
story “inaccurate”, although my sense is that the FT article is being
judged rather harshly – the chances of Hester being awarded a bonus of
less than £1m are negligible, according to insiders.
Chris Leslie MP, the shadow financial secretary to the Treasury, has also weighed in on the Hester bonus story:
“If
this is true then it will show that David Cameron's promise to rein in
excessive bonuses has been nothing but hot air. When the share price at
RBS has fallen over the last year bonuses of this size will look to
millions of hard-pressed families like a huge reward for failure. This
can only renew the case Labour has made for a tax on bank bonuses to
fund 100,000 jobs for young people.”
Those with memories reaching
back further than the last general election will see this as intensely
hypocritical. In the final two years of the Labour government, the bonus
pools at RBS were significantly larger than this year’s will be.
Importantly
in respect of the wider reputation of the banking industry, there is a
school of thought that while senior executives understand public anger
over bankers’ pay, the decisions of some chief executives to waive tens
of millions of pounds-worth of bonuses since 2008 has done nothing to
assuage that annoyance. That being the case, they say, they may as well
take the money.

LLOYDS BANK ARE GOING TO LOSE 1,000 JOBS.

and on it goes.Presumably the job losses will only stop when everyone is unemployed.

SEE MY THREAD ON STORE CLOSURES ETC FOR OTHER JOB LOSSES

At the last count the unemployed stood at 2.8 million.

America is starting to improve because Bernanke has opted for Quantative easing which is helping to create jobs. George Osborne is now being
criticised for too stringent an approach which stifles growth.

RBS said to dismiss 4 Bankers as Libor investigation widens to Brokers.

The upside is that many of the people now taking the hits are the greedy ones who caused the problem in the first instance.

malena stool wrote:The upside is that many of the people now taking the hits are the greedy ones who caused the problem in the first instance.

Morning malena , yes, rather late in the day and yet another reason not to pay the exhorbitant Salaries the Board of RBS were demanding when they
are not monitoring their Staff properly.

I am half watching the News and trust the Italians to sort out the tax dodgers....it's hysterical.

Apparently the Police are working at night pulling over Drivers of top of the range Cars, like Ferrari, etc, but not for speeding or lights not working.....oh no,
the Italians are far more subtle. The information they get from the driver is checked oiut against their Tax returns to prove they are not declaring all
their income.!!!! They have caught hundreds, so much so that top of the range Car Dealers are tearing their hair out because sales have dropped,!!!

Panda wrote:

malena stool wrote:The upside is that many of the people now taking the hits are the greedy ones who caused the problem in the first instance.

Morning malena , yes, rather late in the day and yet another reason not to pay the exhorbitant Salaries the Board of RBS were demanding when they
are not monitoring their Staff properly.

I am half watching the News and trust the Italians to sort out the tax dodgers....it's hysterical.

Apparently the Police are working at night pulling over Drivers of top of the range Cars, like Ferrari, etc, but not for speeding or lights not working.....oh no,
the Italians are far more subtle. The information they get from the driver is checked oiut against their Tax returns to prove they are not declaring all
their income.!!!! They have caught hundreds, so much so that top of the range Car Dealers are tearing their hair out because sales have dropped,!!!

What a brill idea... you really wouldn't credit the Italians to be so devious, they must have learnt something from Blair, Brown and Cameron etc. Such an idea wouldn't work here though, our home grown crooks CEOs and Higher Management tend to use Company Cars, this way all Tax, Insurance and Maintenance is paid for by the suckers shareholders.....

RBS say they will be in credit in 2 years. Protesters were outside RBS to protest against the Bonuses paid to employees while the share price has fallen
and why so many are out of work. RBS has not made the target for lending to small businesses. Customers are taking their accounts away from RBS

Panda wrote:RBS say they will be in credit in 2 years. Protesters were outside RBS to protest against the Bonuses paid to employees while the share price has fallen
and why so many are out of work. RBS has not made the target for lending to small businesses. Customers are taking their accounts away from RBS

The arrogance of these people... Hestler sat bare faced in front of the cameras knowing full well that thousands are losing their employment, their businesses, their homes and in some instances suffering family break ups through the fraudulent practices of his predecessors. They have not met their targets, they are still losing millions daily, yet feel bonuses are still in order.

Why and where do they conceive these notions?

The answer to this is they are greedy, narcissistic and egotistical, they consider themselves as being knowledgeable and beyond reproach, showing nothing but contempt for the people whose money pays their wages. They should not need to be told that what they were and still are doing was and is criminal, they are professional accountants and are as fully responsible for their own actions as would be any other professional in any other occupation and no amount of spin can hide that fact.

The likes of Blair, Brown and Darling are equally to blame, they would have pre knowledge of the situation that brought about financial collapse but did nothing to control it. Cameron, as much as it goes against the grain to side with him, sadly has no choice, in my opinion, but to take the line he has, the incredible stupidity and avarice of New Labour de-regulation of banking has created what we now have.

RBS and Lloyds, both bailed out by Gordon Brown still continue to make heavy losses......remember, these Banks belong to the Taxpayer......are to borrow 15 Billion Euros from the ECB at a 1% interest for 3 years.

The Directors have had a few years to sort out the mess and the recent sale by Hester Chairman of RBS of some of the assets was obviously not enough to lessen the debt. When asked in a televised interview why he continues to pay Bonuses he said valuable staff would look elsewhere for jobs
if they lost their bonuses. Is their any other Business losing so much money and borrowing more who would pay their Staff a bonus in addition to their
Salary???????