A spendthrift Royal Bank of Scotland (RBS) spent 200 million pounds on sponsorship deals with Sachin Tendulkar and other top sportsmen just weeks before being bailed out by the British government, a newspaper reported Sunday.
The Sunday Times said the bank, which is now 68 percent owned by the taxpayer, signed the long-term contracts before being bailed by the British government in October.
Former RBS chief executive Sir Fred Goodwin agreed contracts of up to five years.
Apart from Sachin, the stars signed as 'global ambassadors' include Zara Phillips, the rider and granddaughter of the Queen, Jack Nicklaus, the golfer, and Sir Jackie Stewart, the former motor racing champion.
Stewart, who is said to have earned four million pounds to promote RBS, said last week: "I am very much still with RBS. My contract has nearly two years to run and they always honour contracts."
The news comes after the bank announced that it had made a loss of 28 billion pounds last year.
Treasury select committee member MP John Mann told the paper: "They have been reckless yet again. This doesn't seem to be a bank that could do anything in moderation. It now needs to realise the golden days are over."
The paper quoted a spokesman for RBS as saying: "All our sponsorship agreements were negotiated on commercial principles and meet strict corporate governance rules."
Showing posts with label Royal Bank of Scotland. Show all posts
Showing posts with label Royal Bank of Scotland. Show all posts
Sunday, February 15, 2009
Friday, February 6, 2009
RBS ousts seven directors in boardroom cull
Royal Bank of Scotland ousted seven directors in a boardroom cull on Friday to leave the government-backed bank better positioned for its restructuring.
The seven non-executive directors will retire immediately, RBS said, just three days after Philip Hampton replaced Tom McKillop as chairman.
RBS's board has been criticised for allowing former chief executive Fred Goodwin to make too many acquisitions and pursue a risky strategy. Britain's government has had to pump 20 billion pounds ($29.3 billion) into the bank which is set to report a 2008 loss of up to 28 billion pounds, a record for a UK company.
The directors going in the dramatic clear-out include Peter Sutherland, the former attorney general of Ireland and chairman of oil major BP and Goldman Sachs International, and Bob Scott, the senior non-executive of RBS and chairman of publisher Yell.
Also going are Jim Currie, Bill Friedrich, Bud Koch, Janis Kong and former Treasury official Steve Robson.
RBS has pledged to name three new non-executive directors, to be appointed with the approval of UK Financial Investments, the body set up to oversee the government's near 70 percent stake in the lender.
The board keeps its three executives -- new Chief Executive Stephen Hester, Finance Director Guy Whittaker and Gordon Pell, head of regional markets.
There are five remaining non-executive directors in addition to Hampton, who said now was the right time to cut the board's size as several directors were completing two or more terms or had asked to retire.
Whittaker and Pell are the only executives left from Goodwin's regime.
The seven non-executive directors will retire immediately, RBS said, just three days after Philip Hampton replaced Tom McKillop as chairman.
RBS's board has been criticised for allowing former chief executive Fred Goodwin to make too many acquisitions and pursue a risky strategy. Britain's government has had to pump 20 billion pounds ($29.3 billion) into the bank which is set to report a 2008 loss of up to 28 billion pounds, a record for a UK company.
The directors going in the dramatic clear-out include Peter Sutherland, the former attorney general of Ireland and chairman of oil major BP and Goldman Sachs International, and Bob Scott, the senior non-executive of RBS and chairman of publisher Yell.
Also going are Jim Currie, Bill Friedrich, Bud Koch, Janis Kong and former Treasury official Steve Robson.
RBS has pledged to name three new non-executive directors, to be appointed with the approval of UK Financial Investments, the body set up to oversee the government's near 70 percent stake in the lender.
The board keeps its three executives -- new Chief Executive Stephen Hester, Finance Director Guy Whittaker and Gordon Pell, head of regional markets.
There are five remaining non-executive directors in addition to Hampton, who said now was the right time to cut the board's size as several directors were completing two or more terms or had asked to retire.
Whittaker and Pell are the only executives left from Goodwin's regime.
Tuesday, April 22, 2008
Britain's RBS bank unveils record write-downs and cash plans
The Royal Bank of Scotland (RBS) Tuesday asked shareholders for a record 12 billion pounds ($24 billion) of new capital as it revealed fresh write-downs of 5.9 billion pounds resulting from the current credit crunch.
Britain's second biggest banking group said it would raise the capital by issuing shares at a 43.6-percent discount to Monday's closing price in what analysts said was one of the biggest rights issues in British corporate history.
The losses announced as a result of exposure to the US subprime mortgage market are the highest yet recorded by any British bank, and come on top of write-downs of 2.4 billion pounds already announced by RBS.
The Edinburgh-based bank said it was also carrying out a "strategic review" of its insurance arm, which could potentially involve a sale yielding some four billion pounds.
RBS is the first lending British bank to ask shareholders to help rebuild its capital base, but others are expected to follow suit.
It spent nearly 50 billion pounds last year on the acquisition of Dutch Bank ABN Amro in one of the biggest takeovers in the banking sector.
Details of the RBS plans to raise more cash come ahead of a shareholder meeting Wednesday, and follow the injection of a massive 50 billion pounds into the banking system by the Bank of England Monday.
DPA
Britain's second biggest banking group said it would raise the capital by issuing shares at a 43.6-percent discount to Monday's closing price in what analysts said was one of the biggest rights issues in British corporate history.
The losses announced as a result of exposure to the US subprime mortgage market are the highest yet recorded by any British bank, and come on top of write-downs of 2.4 billion pounds already announced by RBS.
The Edinburgh-based bank said it was also carrying out a "strategic review" of its insurance arm, which could potentially involve a sale yielding some four billion pounds.
RBS is the first lending British bank to ask shareholders to help rebuild its capital base, but others are expected to follow suit.
It spent nearly 50 billion pounds last year on the acquisition of Dutch Bank ABN Amro in one of the biggest takeovers in the banking sector.
Details of the RBS plans to raise more cash come ahead of a shareholder meeting Wednesday, and follow the injection of a massive 50 billion pounds into the banking system by the Bank of England Monday.
DPA
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