RBS: Inside The Bank That Ran Out Of Money (2011)
In 2008, the Royal Bank of Scotland (RBS), a venerable and internationally renowned institution, teetered on the brink of collapse. Its near-demise was a humbling moment for the bank and a disaster for the thousands of employees who lost their jobs. This gripping documentary delves into the heart of RBS’s fall from grace, revealing the inner workings of the bank before its crash.
Here are some key points from this documentary:
- Global Ambitions: RBS had grand aspirations, transforming itself into a truly global organization. Its strategy involved acquisitions and operations in the United States, once a beacon of expansion. However, these very moves would later play a pivotal role in the bank’s downfall.
- Sub-Prime Catastrophe: RBS’s enthusiastic pursuit of Dutch-based banking group ABN Amro led to a critical misstep. The bank’s decision to apply a relatively light approach to due diligence backfired when the scale of ABN Amro’s problems became apparent. The sub-prime property market debacle further exacerbated RBS’s woes.
- Culture and Mistakes: Key executives, who held senior positions at RBS before the crash, candidly discuss the bank’s culture, global strategy, and the mistakes that triggered its rapid decline. They dissect the decisions that ultimately pushed RBS to the brink.
- Fred Goodwin’s Humbling Moment: The documentary features footage from Sir Fred Goodwin’s final meeting with shareholders. An investor invited the former Forbes Global Businessman of the Year to apologize. Although broadcast cameras were not allowed into the meeting, the documentary captures this poignant moment for the outgoing chief executive.
- Contributors: Interviews with former RBS chief executive and chairman Sir George Mathewson, former RBS director Gordon Pell, Iain Robertson (RBS’s former Head of Corporate Banking), and Sir Peter Burt (chief executive of Bank of Scotland during the National Westminster Bank bid) provide valuable insights.
RBS: Inside The Bank That Ran Out Of Money chronicles a pivotal chapter in Britain’s journey into recession. It serves as a cautionary tale about the perils of unchecked ambition, inadequate due diligence, and the high stakes of global finance. RBS’s survival, secured by a £20 billion bailout from the UK Government, remains a stark reminder of the fragility of even the mightiest financial institutions.
Also Watch: A History of Scotland (2008)
