The conference is in full swing and Sir Fred Goodwin is almost sounding confident. Does he feel under pressure?
“Given that we are in the thick of a global financial crisis here, all of my colleagues feel under pressure.” But then this is about customers - RBS has got to support its customers.
Sir Fred seems concerned that there is “a self fulfilling aspect to this” — if they banks are in trouble the rest of the country will be facing trouble. “We are not needing any downward pressure just now.” So today’s announcement is about the “navigation of these difficult water,” and Sir Tom and his colleagues are Devoting their energies to getting through this.
Sir Tom McKillop is back in the discussion — his confidence clearly bolstered by Sir Fred’s unruffled demeanour. We’re back to the fact that “our credit metrics are very sound.”
This is a limited problem, says Sir Tom.
Hold on! It’s landed - the first resignation question. Does Sir Fred feel personal disappointment that he is not able to run the bank on the basis on which he did - with aggressively efficient capital? Did he consider resigning during the last week?
Sir Fred jumps at the opportunity to talk about capital rather than himself. You know “the world has changed…and when the world changes have to revisit all assumptions.” Obviously, RBS had to look at its capital. This was the “right thing to do”.
Yes, but how about Sir Fred personally? “There are more important issues here,” insists Sir Fred, such as the well being of the bank. But he’s not “dodging the question.”
He can well understand that this is not easy for shareholders. Indeed, Sir Fred is a shareholder himself. “But it is a fact that this is the right thing to do.”
Sir Tom realises its time to do the chairman thing. “The board is unanimous that the entire executive team can see the bank through this.” After all, many other banks are facing these challenges. “We are forward thinking and forward acting on this.”
“We are one hundred per cent focused on the future and taking the business forward.”
The conference call continues…
