RBS has attributed the losses to two main factors:
- The misselling of Payment Protection Insurance - well I sorry, but I'm not going to feel sorry for RBS for that! If I ran a business and missold a product or service, I'd most likely loses my business, would probably be fined and would possibly be sent to prison. So I think they have got off quite lightly there.
- They had to right off £1bn due to the Greek crisis. Again, their own fault. Before investing or lending money to anyone you should always carry out proper due diligence. If they had, they wouldn't have invested in the bonds. It's not rocket science, you don't have to be an economic genius to work it out. Simply, look at the money currently coming in, look at the money currently going out, then do the same for the full period you want to lend the money for. If they can afford it - lend, if not - don't lend. Simple. And don't just rely on Credit Rating Agencies.