RBS is in the doghouse again

Needs to hold £13.6bn cash.

RBS is in the doghouse yet again after the Prudential Regulation Authority (PRA), the Bank of England’s new banking regulator, announced that despite their best efforts five of the biggest UK banks will need to find an additional £13bn capital to cover their risks.  

To put it in perspective, that's twice the amount the PRA said RBS would have to come up when it released its report at the end of 2012. Back then the PRA named RBS as the worst offender in a list of top banks and building societies needing to fill a £27bn hole in their balance sheets. Yep, you heard that right. Banks are being told that should both be lending out more money to get the economy moving while at the same time being told they need to shore up their cash reserves in case everything goes to hell again. And in a timely manner, the Conservatives have an election to win soon.

Just to make RBS look even worse this news came in hot on the heels of George Osborne’s self-satisfied announcement that 39 per cent tax-payer owned Lloyds is ready for full re-privatisation while RBS may need to be split into a "good" and "bad" bank before it can be sold off. I’ll leave it to you to figure out which part the tax payer will be left with.

RBS alone accounts for £13.6bn of the total outstanding cash that banks need to hold. Making up the remainder are Lloyds Banking Group, Barclays, Co-operative Bank and Nationwide Building Society.

All of the banks, the PRA admits, have put good plans in to collect together the required capital but the regulator is coming to wildly different conclusions about how much the banks will actually save. According to the PRA actions planned by RBS in 2013 would reduce this gap to £3.2bn. However, RBS has said by its own estimate the shortfall was scheduled to be £400m by the end of the year.

Doesn’t a calculation difference of £2.8bn from two government controlled operations just fill you with confidence?

Photograph: Getty Images

Billy Bambrough writes for Retail Banker International at VRL financial news.
 

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Tim Farron sacks former MP David Ward

The Liberal Democrat leader said Ward's remarks made him "unfit" to stand. 

Liberal Democrat leader Tim Farron has sacked David Ward as a candidate declaring him "unfit to represent the party". 

Ward, who lost his seat in Bradford East in 2015, once said "the Jews" were "within a few years of liberation from the death camps...inflicting atrocities on Palestinians". At the time, the comments caused outcry, and Ward faced disciplinary procedures - later adjourned.

Farron, though, doesn't intend to revisit this particular episode. After news broke that Ward had been re-selected to stand as a candidate, he initially said it was not the leader's job to select candidates, but hours later had intervened to stop it. 

In a short statement, he said: "I believe in a politics that is open, tolerant and united. David Ward is unfit to represent the party and I have sacked him."

Although Ward has been involved in anti-racism organisations, he has courted controversy with his conflation of Jews with Israel, his questioning of Israel's right to exist, and his tweet in the aftermath of the Charlie Hebdo attack, in which French Jews were targeted, that "Je suis #Palestinian".

While the anti-Semitism row threatened to knock the Lib Dem's early election campaign off course, Farron's decision may help him avoid the ongoing saga haunting the rival Labour party. In April, Labour decided not to expel Ken Livingstone for his claim that Adolf Hitler supported Zionism "before he went mad and ended up killing six million Jews".

Julia Rampen is the digital news editor of the New Statesman (previously editor of The Staggers, The New Statesman's online rolling politics blog). She has also been deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines. 

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