Bank Of England Warn Of "Challenging" Outlook For Britain's Financial System

GoldCore's picture

Ulster Bank Parent RBS Fails Bank of England Stress Test

"Royal Bank of Scotland (RBS)(RBS.L) will cut costs and sell assets to boost capital levels, it said on Wednesday after failing this year's Bank of England stress test, which warned of a "challenging" outlook for Britain's financial system.

The state-backed lender rushed out a statement following the announcement to say it would take a range of actions, including selling off bad loans and cutting costs to make up the capital shortfall identified by the tests of around 2 billion pounds.

The unexpected result underlines the litany of problems RBS is grappling with, which include a mounting legal bill for misconduct ahead of the 2008 financial crisis and difficulties selling off assets such as its Williams & Glyn banking business.

The lender said it had agreed a plan of action with the Prudential Regulation Authority, the Bank of England's enforcement arm, that should mean it does not have to tap markets to raise the money needed."
From Reuters

We warned of the RBS, Ulster Bank ‘£100 Billion Black Hole’ and the bail-in risk due to the ‘danger of failing' in June 2014 here

Bail-ins can now be used in the UK, EU, U.S. and G20 countries. Banks internationally and especially in Europe remain vulnerable.

After Cyprus, which country will be the next to suffer bail-ins? Will RBS and by extension Ulster Bank, be the first UK and Irish banks to be subject to bail-ins?

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House_Wife's picture

I have doubts that the people would accept bail-ins without serious protest. I wouldn't want to be in London on that day. It is not the same place it used to be, it is becoming more violent with time.

waldo simon's picture

what's with the repeats Rumple? are we too thick to get it in one?

OliverAnd's picture

Why don't they sell the Elgin marbles?

 

Rumple4skin's picture

But it's the bank of Scotland. WTF has it to do with the BoE? Talk to Sturgeon Mr Carney why dontcha?

Rumple4skin's picture

But it's the bank of Scotland. WTF has it to do with the BoE? Talk to Sturgeon Mr Carney why dontcha?

Rumple4skin's picture

But it's the bank of Scotland. WTF has it to do with the BoE? Talk to Sturgeon Mr Carney why dontcha?

Rumple4skin's picture

But it's the bank of Scotland. WTF has it to do with the BoE? Talk to Sturgeon Mr Carney why dontcha?

Rumple4skin's picture

But it's the bank of Scotland. WTF has it to do with the BoE? Talk to Sturgeon Mr Carney why dontcha?

Rumple4skin's picture

But it's the bank of Scotland. WTF has it to do with the BoE? Talk to Sturgeon Mr Carney why dontcha?

Rumple4skin's picture

But it's the bank of Scotland. WTF has it to do with the BoE? Talk to Sturgeon Mr Carney why dontcha?

Rumple4skin's picture

But it's the bank of Scotland. WTF has it to do with the BoE? Talk to Sturgeon Mr Carney why dontcha?

Rumple4skin's picture

But it's the bank of Scotland. WTF has it to do with the BoE? Talk to Sturgeon Mr Carney why dontcha?

Rumple4skin's picture

But it's the bank of Scotland. WTF has it to do with the BoE? Talk to Sturgeon Mr Carney why dontcha?

Rumple4skin's picture

But it's the bank of Scotland. WTF has it to do with the BoE? Talk to Sturgeon Mr Carney why dontcha?

Rumple4skin's picture

But it's the bank of Scotland. WTF has it to do with the BoE? Talk to Sturgeon Mr Carney why dontcha?

Rumple4skin's picture

But it's the bank of Scotland. WTF has it to do with the BoE? Talk to Sturgeon Mr Carney why dontcha?

Rumple4skin's picture

But it's the bank of Scotland. WTF has it to do with the BoE? Talk to Sturgeon Mr Carney why dontcha?

Rumple4skin's picture

But it's the bank of Scotland. WTF has it to do with the BoE? Talk to Sturgeon Mr Carney why dontcha?

Rumple4skin's picture

But it's the bank of Scotland. WTF has it to do with the BoE? Talk to Sturgeon Mr Carney why dontcha?

Rumple4skin's picture

But it's the bank of Scotland. WTF has it to do with the BoE? Talk to Sturgeon Mr Carney why dontcha?

Overdrawn's picture

Carney would say that wouldn't he, man is working against the interest of the UK people in his attempts to ignore the results of the Brexit vote.

giggler321's picture

Of course "selling off bad loans" is part of the problem not solution - they should be written off and lest us forget the BoE history on prediction and forecast.

roadhazard's picture

No bail in for me I got my money out two years ago.

GreatUncle's picture

The financial problems were never fixed in 2008, only deferred until now when the BOE will blame it all on BREXIT.

Fuck of BOE, for 5 months now the UK government has refused to issue article 50 so any economic downturn can be considered the fault and responsibility of the UK parliament. Especially seeing as they are 95% BREMAIN.

The criminal lawmakers need to resign so other can be elected to rip up the Lisbon Treaty where the UK parliament ceded itself to the EU unbinding itself from the population.

In every British citizen is the power to form another parliament we do not need the corrupt one we currently have.

Issue article 50, tear up the Lisbon Treaty and bind yourself to the people once more, other than that fuck off and die.

Watson's picture

>>>
Ulster Bank Parent RBS Fails Bank of England Stress Test
<<<

IMO RBS is _far_ too large to be effectively managed, by anybody.

The BoE should have told it, long ago, in respect of non-IB activity:
A. To refuse new business; and
B. To refuse to repeat/continue/extend existing business (other than as obliged by existing contracts).

The BoE should have told it, long ago, to shut down the IB.

Then the wretched loss-making thing will shrink naturally.
Either it gets to a point where it is actually profitable (which frankly I doubt), or it shuts down completely. No tears will be shed on the latter outcome.

Watson

norecovery's picture

There had better be serious criminal penalties for bankers/managers that engage in activity that compromises or threatens financial stability. Otherwise, there will be torches and pitchforks the next time the system crashes.

silverer's picture

Let's fix that. "Bank of England warns to buy and hold physical gold, as the conditions out there are totally Obamafied".