Royal Bank of Scotland will go bankrupt or nor?

Discussion in 'Business & Economics' started by Saint, Jan 12, 2012.

  1. Saint Valued Senior Member

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    4,752
    Royal Bank of Scotland will go bankrupt or nor?
    Why it is not in good shape?
     
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  3. Ghostintheshell Registered Member

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    I don't think that it will go bankrupt - it would have too much of an impact on too many people's lives. What is more likely to happen is that more taxpayer money will be thrown at the problem. The government wouldnt be able to allow RBS to go bankrupt as there would also be knock on effects of such a thing happening; all people wtith the bank would wan their money, which they cannot have because RBS spends the money people give them on stocks and shares - they do not actually really have anyones money.
    Also, if that happened with RBS then people would panic, fearing that THEIR bank may suffer the same fate and widespread panic would ensue with everyone trying to get their money out of the banks, this would make the current recession far worse and who knows where it would end. Worst-case scenario for RBS is that another bank buys it out if the taxpayers arent able to.
     
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