Topic > RBS Collapse - 525

“What goes up, must come down” – Isaac Einstein RBS has indeed gone up, in fact, to say it has reached the top of the food chain will be no understatement. But it also collapsed, collapsing. RBS was the market leader. The best at what they did. Best at acquisitions. And this is also what left them with nowhere to go when the credit crunch took center stage. The takeovers made life unbearable and the walls started to close in on RBS. The acquisitions had left them stretched thin: 26 companies in the space of six years to be exact. In April 2008, RBS had already asked investors to pump in £12 billion after revealing a further £5.9 billion of credit crunch write-downs. The bank says in a statement that it has reduced assets by £5.9 billion and that dividends will also be cut for 2008. Britain's biggest human rights issue is also putting pressure on chief executive Sir Fred Goodwin, but he remains adamant and rejects any talk of his resignation and failure. August 2008 was a critical month where RBS showed promising signs, meaning they were actually failing hard. . It had been evident for two years and the aqu...