It's a sobering thought amid all the talk of cuts that Royal Bank of Scotland stands to lose almost as much as the entire Budget deficit on the loans that poured out of its doors in the boom years before the crunch.

One might have thought that even a bank that was as cavalier as RBS in its dash for global domination would be hard-pressed to lose £60 billion on a total book of £270 billion. But it is going to be a very close-run thing. The APA's best estimate is that the losses will amount to “only” £57 billion, a figure conveniently — perhaps too conveniently — just the right side of the line, but still an appalling sum of money, and the most awful indictment of the bank's previous management." etc …

evening standard friday 23

You're right about Cameron. I noticed that too. Intersting. Still can't say I like any of them though.

Cameron has so far been much less of a lickspittle towards the US than his recent predecessors and he's been making efforts to improve relations with Germany, who (temperamentaly) should be the UK's natural allies.

Trichet seems to be more courageous than many. Perhpas more honest too. But even he, I suspect, is parsimonious with the truth.

His 27% is calculated on what nations tell the ECB. What do you bet the the ECB has no real idea what liabilities are still undeclared in the Caja's or in off-balance sheet vehicles? And what about completely off-shore bank activities. It si s ahuge amount and that money interacts with the declared part of finance. There will be CBS written by and for off-shore funds.

And in the case of a big bank collapse that 27% is nonsense. The assets/risk exsposure of any of the big banks is very often worth more than the GDP of the nation housing them.

But then again mate, what do I know. Look at the markets. Rally on!
People are just not going to get it until they find the services are gone.

RichGB –

I think this conflict will be deep and serious. Not shooting serious but I think it might start to expose how compromised certain sections of our government are and where their real loyalties lie.

America is NOT our ally. Some Amercian people are fond of us and are intelligent outward looking people like you have everywhere. But some our poorly informed, eager to hate and easily manipulated. It fear it will get ugly.

The UK needs to make up and decide where it is heading.

It has seemed inevitable (and necessary) to me, for a long time now, that this conflict occur. This is not merely a clash between different economic models, but one of cultures too, with the UK sandwiched uncomfortably between.
The USA has great cultural diversity and many fine traditions, but much of what the world sees is through the green-tinted glasses of corporate America, or the clod-hopping actions of the US armed forces.
If only we (the UK) could take a good dollop of Hungarian democracy, combine this with a typically French appreciation of social life, add in some German efficiency to improve our exports, and oriental philosophy to keep us calm and considerate.
But what virtues shall we take from the Americans? Exuberance and ambition perhaps? Too much ambition (greed?) got us in to this mess -now is the time for some good old British reservedness. [Yuck! Is that a real word?]

Jean-Claude Trichet at FT 22 july 2010

Well, it looks like a significant volume of spending to me, as the problem has not been resolved once and for all ?