February 6th, 2013
If this is the best he can do, Royal Bank of Scotland chief executive Stephen Hester should consider throwing in the towel and conceding what most people already know — that RBS, as it stands, is unmanageable and running an unsustainable business model. Hester (who remains in denial about the egregious wrongdoing that continues daily inside RBS’s Global Restructuring Group) talks about a “culture of selfishness and self-servedness” at the Royal Bank of Scotland. Yet what today’s detailed reports from Department of Justice, Commodities Futures Trading Commission and Financial Services Authority reveal is a culture of greed, corruption and brazen criminality inside RBS’s investment banking arm. If it is not properly dealt with through the criminal courts — as opposed to the limp-wristed measures like the “internal disciplinary process” advocated by Hester — neither RBS, nor the United Kingdom, which it continues to hold to ransom, has much chance of recovery. Well done to Krishnan Guru Murthy for putting Stephen Hester on the spot.