Talk Morgan Forums Community The Malvern Arms Tata Steel

I wonder at what point a business is not entitled to make a profit Stuart?

If a division of my business loses cash and has little prospect of ever delivering a profit, I would close it down. Why would I and my shareholders want to continue to lose money?

Apparently the Royal Bank of Scotland bailout cost the taxpayer £45bn - enough to keep Port Talbot going for over 120 years.

In view of the calamitous social impact of closing Port Talbot, not to mention the strategic risk of leaving the country without large-scale steel manufacturing capability, one would think the Government could step in for a couple of decades to stabilise the situation whilst a long-term solution is sought?

Or simply pull he plug on RBS and fuel the blast furnaces with redundant bankers? Sounds like a win-win to me!

Bank workers are more expendable than steel workers then?

They should burn well having a higher fat content ....

Apparently the "saved" Scunthorpe buy out is to be re handled "British Steel". Well I never.

http://www.telegraph.co.uk/business/2016...ing-scunthorpe/

The collapse of RBS would have affected a lot more people than the loss of Tata Steel, not just staff, who by the way are on the whole earning less than the steel workers and unlike those at the top, don't enjoy huge bonuses, but customers too.

Rant over.

It seems to me that RBS remains a badly run business relying on out of date back office systems. So it loses money every day. Tata runs a good business but loses money every day because it can't sell steel competitively against imported steel.

It is time to force the breakup of RBS and sell off the retail network to new owners. The senior management needs to be retired and without golden parachutes/bonuses.

I did say rant over!

RBS is in the state it in due to bad management at the top leading to massive provisions for payouts etc, rather than the day to day running of the core business which like all banks, is profitable.
I'm not a lover of RBS even if they do pay a part of my pension. When they took over Natwest, they scrapped a lot of the very costly IT development I was working on, in favour of their own systems and swallowed up what was one of the best performing pension schemes around.

Neilda,
Thanks for putting forward some sense -- why indeed should a business exist just to loose money. Companies cannot continue to exist unless the cash coming in exceeds the cash going out!! Perhaps they can in the Jeremy Corbin world, but not in the real one!!