UK banking execs apologise for the credit crisis

The four British bankers who were at the centre of the near collapse of the Royal Bank of Scotland (RBS) and HBOS have apologised and have added fuel to the fiery debate that the banking sector should seek to address the pay system that is on offer.

Former RBS Chairman Tom McKillop announced that the purchase of ABN Amro was the biggest mistake made and the source of the bank’s problems.

Parliamentarians were given their say and a cross party committee were given the opportunity to quiz the bankers after the government spent £37 billion as part of the banking system bailout.

Sir Fred Goodwin, the former chief executive of RBS, officially announced their apologies as part of the procedure of giving evidence in a bid to reduce public anger as well as political pressure.

Lawmakers are angry at what they seem to perceive as an industry that is out of control and now that there is such a vast amount of taxpayers money at risk, many are still angered by reports that RBS is still considering to pay staff bonuses for 2008.

Many have again called for the banking system to introduce a greater amount of realism into the profession and ask whether bankers deserve their bonuses.

Story link: UK banking execs apologise for the credit crisis