Hester: RBS "will be ready to sell by 2015"

Huge losses, bonus caps, and too much government interference.

RBS posted a huge loss today - a pre-tax loss of £5.17bn.

Operating profits were in fact up: £3.46bn in 2012, up from £1.82bn the previous year, the highest since its bail-out in 2008 - but charges from 2012's smorgasboard of scandals brought that right down.

The news came just as EU officials agreed to put a cap on bankers bonuses as early as next year - bad news all round for RBS.

Speaking on the Today programme this morning, RBS boss Stephen Hester said that bankers pay "needs to be in line with contribution."

He said: "I don't think bankers should be treated as special creatures."

"The most important thing for business certainty is a level playing field... As we know the financial crisis was a period of excess in many areas...that's what we're cleaning up for now."

The clean-up is not RBS's only problem though. As the government has a large stake in it you get the impression RBS isn't quite sure what its  priorities should be: should it play to the commercial interests of its minority share-holders, or invest in small businesses, as the government is pressing it to do? There seems to be a lack of communication between government and bank, and in the BBC interview today Hester was clearly champing at the bit for a sell-off.

"We are doing everything we can to facilitate a sale", he said. "I think that RBS will be ready to be privatised in the next couple years. It will be ready to sell by 2015".

"Privatisation is coming further into the agenda of the government and we welcome that."

It will be up to the government to decide the date of the sell-off though - likely to be another point of contention between government and bank.

 

RBS posted a huge loss today Photograph: Getty Images

Martha Gill writes the weekly Irrational Animals column. You can follow her on Twitter here: @Martha_Gill.

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The economics of outrage: Why you haven't seen the end of Katie Hopkins

Her distasteful tweet may have cost her a job at LBC, but this isn't the last we've seen of Britain's biggest troll. 

Another atrocity, other surge of grief and fear, and there like clockwork was the UK’s biggest troll. Hours after the explosion at the Manchester Arena that killed 22 mostly young and female concert goers, Katie Hopkins weighed in with a very on-brand tweet calling for a “final solution” to the complex issue of terrorism.

She quickly deleted it, replacing the offending phrase with the words “true solution”, but did not tone down the essentially fascist message. Few thought it had been an innocent mistake on the part of someone unaware of the historical connotations of those two words.  And no matter how many urged their fellow web users not to give Hopkins the attention she craved, it still sparked angry tweets, condemnatory news articles and even reports to the police.

Hopkins has lost her presenting job at LBC radio, but she is yet to lose her column at Mail Online, and it’s quite likely she won’t.

Mail Online and its print counterpart The Daily Mail have regularly shown they are prepared to go down the deliberately divisive path Hopkins was signposting. But even if the site's managing editor Martin Clarke was secretly a liberal sandal-wearer, there are also very good economic reasons for Mail Online to stick with her. The extreme and outrageous is great at gaining attention, and attention is what makes money for Mail Online.

It is ironic that Hopkins’s career was initially helped by TV’s attempts to provide balance. Producers could rely on her to provide a counterweight to even the most committed and rational bleeding-heart liberal.

As Patrick Smith, a former media specialist who is currently a senior reporter at BuzzFeed News points out: “It’s very difficult for producers who are legally bound to be balanced, they will sometimes literally have lawyers in the room.”

“That in a way is why some people who are skirting very close or beyond the bounds of taste and decency get on air.”

But while TV may have made Hopkins, it is online where her extreme views perform best.  As digital publishers have learned, the best way to get the shares, clicks and page views that make them money is to provoke an emotional response. And there are few things as good at provoking an emotional response as extreme and outrageous political views.

And in many ways it doesn’t matter whether that response is negative or positive. Those who complain about what Hopkins says are also the ones who draw attention to it – many will read what she writes in order to know exactly why they should hate her.

Of course using outrageous views as a sales tactic is not confined to the web – The Daily Mail prints columns by Sarah Vine for a reason - but the risks of pushing the boundaries of taste and decency are greater in a linear, analogue world. Cancelling a newspaper subscription or changing radio station is a simpler and often longer-lasting act than pledging to never click on a tempting link on Twitter or Facebook. LBC may have had far more to lose from sticking with Hopkins than Mail Online does, and much less to gain. Someone prepared to say what Hopkins says will not be out of work for long. 

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