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.
 

Photo: Getty
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Goodbye, Sam Allardyce: a grim portrait of national service

In being brought down by a newspaper sting, the former England manager joins a hall of infamy. 

It took the best part of 17 years for Glenn Hoddle’s reputation to recover from losing the England job.

Between leaving his job as manager in February 1999 and re-surfacing as a television pundit on ITV during the 2014 World Cup, Hoddle was English football’s great pariah. Thanks to his belief in faith healer Eileen Drewery and a string of unconventional and unacceptable views on reincarnation, he found himself in exile following in a newspaper interview during qualification for England’s Euro 2000 campaign.

But just as Hoddle is now cautiously being welcomed back to the bosom of English football, current incumbent Sam Allardyce has felt the axe fall. After less than two months in charge of the national side and with only a single game under his belt, the former Bolton Wanderers manager was caught up in a sting operation by the Daily Telegraph — allegedly offering guidance on how to circumvent his employer’s rules on third-party player ownership.

The rewards for guiding an English team to major international success promise to be spectacular. As a result, the price for any failure — either moral or performance-related — is extreme.

Hoddle’s successor – the endearing Kevin Keegan – resigned tearfully in a toilet at Wembley after a tumultuous 18-month spell in charge. His replacement, the laconic Sven-Göran Eriksson, provided moments of on-field excitement paired with incredible incidents of personal indiscretion. His tangle with "fake sheikh" Mazher Mahmood in the run up to the 2006 World Cup – an incident with haunting parallels to Allardyce’s current predicament – led to a mutual separation that summer.

Steve McClaren was hapless, if also incredibly unfortunate, and was dispatched from the top job in little over a year. Fabio Capello – who inspired so much optimism throughout his first two years in charge – proved himself incapable of lifting the hex on English major tournament fortunes.

The Italian’s star was falling from the moment he put his name to the oddly timed Capello Index in 2010, although his sustained backing of then captain John Terry over a string of personal misdemeanours would prove to be the misjudgement that ultimately forced his exit. As Allardyce has found out, the FA has become increasingly hard on lapses in moral judgement.

English football is suffused with a strange mix of entitlement and crushing self-doubt. After a decade that has given us a Wimbledon champion, several Ashes triumphs, two Tour de France winners and eye-watering Olympic success, a breakthrough in this area has never felt further away.

In replacing Capello, Roy Hodgson — the man mocked by Allardyce during his hours supping pints with Telegraph reporters — had hoped to put a rubber stamp on a highly respectable coaching career with a spell managing his own country. But this summer’s farcical defeat to Iceland at Euro 2016 put his previous career in a much harsher light.    

Allardyce was a mix of the best and worst of each of his predecessors. He was as gaffe-prone as Steve McClaren, yet as committed to football science and innovation as Hodgson or Capello. He also carried the affability of Keegan and the bulldog spirit of Terry Venables — the last man to make great strides for England at a major tournament.  

And as a result, his fall is the most heartbreaking of the lot. The unfairly decried charlatan of modern football is the same man who built a deeply underrated dynasty at Bolton before keeping Blackburn, West Ham and Sunderland afloat in the most competitive league in Europe.

And it was this hard apprenticeship that convinced the FA to defy the trendy naysayers and appoint him.

“I think we make mistakes when we are down here and our spirit has to come back and learn,” Hoddle mused at the beginning of his ill-fated 1999 interview. As the FA and Allardyce consider their exit strategy from this latest sorry mess, it’s difficult to be sure what either party will have learned.

The FA, desperately short of options could theoretically turn again to a reborn Hoddle. Allardyce, on the other hand, faces his own long exile. 

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