More evidence of smoke and mirrors

RBS have announced that they may face full-year losses of up to £8bn, after the bank said it needed another £3.1bn for claims relating to the financial crisis.

The boss of RBS stated "the scale of the bad decisions during that period means that some problems are still just emerging."

This is straight out of the manual under the heading “nothing to do with me guv”.

There have been repeated assurances that the banks were putting their houses in order but there is a growing feeling that many of the problems have been swept under the carpet rather than acknowledged and dealt with.

This announcement from RBS adds credence to this view.

 

It is hard to believe that we have seen the end of issues with the banks when we consider their recent history of financial mismanagement and sheer scale of incompetence.

 

 

There is no doubt that the internal controls of these institutions appear seriously deficient but there is a question mark concerning the obvious lack of professionalism on behalf of the independent auditors.