The Rise and Fall of RBS I
In this video, January talks about how the seeds of unbridled ambition within RBS were sown as early as the 1980s with the-then CEO Sir George Mathewson, who had his sights set on the international expansion of RBS. She also talks about the NatWest acquisition which saw Fred Goodwin’s star rise even higher, priming him for the top role and transforming RBS into a multi-platform, global banking giant.
Overview
In 2008, RBS was the fifth most valuable bank in the world by market capitalisation. They found themselves in the position where each takeover justified the next, on account of the bank’s success at integrating businesses, streamlining operations, slashing overheads and boosting profitability. RBS seemed to be soaring to new heights with each takeover, but it was at the height of their success that analysts began to wonder whether RBS was flying too close to the sun.
Key learning objectives:
Identify the first step in RBS’ quest to transform into a global powerhouse
What were the defining characteristics of RBS’ real transformation?
Were there any issues regarding the CEOs strategy?
Summary
Expert
January Carmalt
January began her career in 1999 with Bank of America in Charlotte, NC. From the Credit Products team, she moved into fixed income bond research covering Telecoms and Financials. While in London, January focused on financial institutions bond research until her Director and head bond analyst role at Deutsche Bank. As of 2011, January has worked as a freelance writer.
