I’m surrounded here by offices of the Royal Bank of Scotland (RBS) and what used to be ABNAMRO until RBS paid “between £15 and £20Bn too much” for it, which probably also explains why a growing number of local pubs and sandwich bars catering to the financial workers have been closing in the last few month, and why the crowd of RBS smokers on Devonshire Square seems to be increasing.
I started wondering about this as one of the companies I’m engaged in acquiring has an outstanding loan with RBS, one that we as investors will have to guarantee at some stage. The trouble is, that I seem to have already guaranteed it personally as the UK Government has effectively written a blank cheque to the part nationalised banks and may end up having to wholly nationalise RBS.
Confusing isn’t it, and does that mean I can put the cheque for income tax which I just wrote to HM Revenue & Customs on my expenses?
UPDATE: Is the London becoming Rejkavik on Thames? Jim Rogers of the Quantum Fund seems to think so.