The very ugly truth about RBS

It's no secret Britain's banks are still in a mess. What isn't so clear is just how much of a mess, says James Ferguson.

I wanted to talk to you today about a topic that is on everyone's lips at the moment: the re-privatisation of RBS. Because I think there is a disturbing story here that is not being widely reported in the mainstream press. And it goes right to the heart of the economic problems that Britain will face over the next few years. It certainly affects your investments.

When Stephen Hester took the head job at RBS, he was given the task of shrinking and de-risking the bank. The ultimate goal was to bring about a sufficient recovery so that the government could reprivatise at a higher share price, and make back the €45bn they had invested in 2008-9.

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James Ferguson qualified with an MA (Hons) in economics from Edinburgh University in 1985. For the last 21 years he has had a high-powered career in institutional stock broking, specialising in equities, working for Nomura, Robert Fleming, SBC Warburg, Dresdner Kleinwort Wasserstein and Mitsubishi Securities.