Currently released so far... 5268 / 251,287
Articles
Browse latest releases
2010/12/01
2010/12/02
2010/12/03
2010/12/04
2010/12/05
2010/12/06
2010/12/07
2010/12/08
2010/12/09
2010/12/10
2010/12/11
2010/12/12
2010/12/13
2010/12/14
2010/12/15
2010/12/16
2010/12/17
2010/12/18
2010/12/19
2010/12/20
2010/12/21
2010/12/22
2010/12/23
2010/12/24
2010/12/25
2010/12/26
2010/12/27
2010/12/28
2010/12/29
2010/12/30
2011/01/01
2011/01/02
2011/01/04
2011/01/05
2011/01/07
2011/01/09
2011/01/10
2011/01/11
2011/01/12
2011/01/13
2011/01/14
2011/01/15
2011/01/16
2011/01/17
2011/01/18
2011/01/19
2011/01/20
2011/01/21
2011/01/22
2011/01/23
2011/01/24
2011/01/25
2011/01/26
2011/01/27
2011/01/28
2011/01/29
2011/01/30
2011/01/31
2011/02/01
2011/02/02
2011/02/03
2011/02/04
2011/02/05
2011/02/06
2011/02/07
2011/02/08
2011/02/09
2011/02/10
2011/02/11
2011/02/12
2011/02/13
2011/02/14
2011/02/15
2011/02/16
2011/02/17
2011/02/18
2011/02/19
2011/02/20
2011/02/21
2011/02/22
2011/02/23
2011/02/24
2011/02/25
2011/02/26
2011/02/27
2011/02/28
Browse by creation date
Browse by origin
Embassy Athens
Embassy Asuncion
Embassy Astana
Embassy Asmara
Embassy Ashgabat
Embassy Ankara
Embassy Amman
Embassy Algiers
Embassy Addis Ababa
Embassy Accra
Embassy Abuja
Embassy Abu Dhabi
Embassy Abidjan
Consulate Amsterdam
American Institute Taiwan, Taipei
Embassy Bujumbura
Embassy Buenos Aires
Embassy Budapest
Embassy Bucharest
Embassy Brussels
Embassy Bridgetown
Embassy Bratislava
Embassy Brasilia
Embassy Bogota
Embassy Bishkek
Embassy Bern
Embassy Berlin
Embassy Belgrade
Embassy Beirut
Embassy Beijing
Embassy Banjul
Embassy Bangkok
Embassy Bandar Seri Begawan
Embassy Bamako
Embassy Baku
Embassy Baghdad
Consulate Barcelona
Embassy Copenhagen
Embassy Conakry
Embassy Colombo
Embassy Chisinau
Embassy Caracas
Embassy Canberra
Embassy Cairo
Consulate Curacao
Consulate Casablanca
Consulate Cape Town
Embassy Dushanbe
Embassy Dublin
Embassy Doha
Embassy Djibouti
Embassy Dhaka
Embassy Dar Es Salaam
Embassy Damascus
Embassy Dakar
Consulate Dubai
Embassy Kyiv
Embassy Kuwait
Embassy Kuala Lumpur
Embassy Kinshasa
Embassy Kigali
Embassy Khartoum
Embassy Kampala
Embassy Kabul
Embassy Luxembourg
Embassy Luanda
Embassy London
Embassy Ljubljana
Embassy Lisbon
Embassy Lima
Embassy Lilongwe
Embassy La Paz
Consulate Lagos
Mission USNATO
Embassy Muscat
Embassy Moscow
Embassy Montevideo
Embassy Monrovia
Embassy Minsk
Embassy Mexico
Embassy Mbabane
Embassy Maputo
Embassy Manama
Embassy Managua
Embassy Malabo
Embassy Madrid
Consulate Munich
Consulate Montreal
Consulate Monterrey
Consulate Milan
Embassy Pristina
Embassy Pretoria
Embassy Prague
Embassy Port Au Prince
Embassy Phnom Penh
Embassy Paris
Embassy Paramaribo
Embassy Panama
Consulate Peshawar
REO Basrah
Embassy Rome
Embassy Riyadh
Embassy Riga
Embassy Reykjavik
Embassy Rangoon
Embassy Rabat
Consulate Rio De Janeiro
Consulate Recife
Secretary of State
Embassy Stockholm
Embassy Sofia
Embassy Skopje
Embassy Singapore
Embassy Seoul
Embassy Sarajevo
Embassy Santo Domingo
Embassy Santiago
Embassy Sanaa
Embassy San Salvador
Embassy San Jose
Consulate Strasbourg
Consulate Shenyang
Consulate Shanghai
Consulate Sao Paulo
Embassy Tunis
Embassy Tripoli
Embassy Tokyo
Embassy The Hague
Embassy Tel Aviv
Embassy Tehran
Embassy Tegucigalpa
Embassy Tbilisi
Embassy Tashkent
Embassy Tallinn
USUN New York
USEU Brussels
US Mission Geneva
US Interests Section Havana
US Delegation, Secretary
UNVIE
Embassy Ulaanbaatar
Browse by tag
AF
ASEC
AR
AORC
AJ
AM
AMGT
AE
AU
AGMT
AG
AS
AFIN
APER
ABUD
ATRN
AL
AEMR
ACOA
AO
AX
AMED
ADCO
AODE
AFFAIRS
AC
ASIG
ABLD
AA
AFU
ASUP
AROC
ATFN
AVERY
APCS
AER
ASECKFRDCVISKIRFPHUMSMIGEG
AEC
APECO
CU
CO
CH
CDG
CIA
CACM
CDB
CI
CS
CVIS
CA
CBW
CASC
CD
CV
CMGT
CLINTON
CE
CJAN
CG
CF
CN
CAN
COUNTER
CIS
CM
CONDOLEEZZA
COE
CR
CY
CTM
COUNTRY
CLEARANCE
CPAS
CWC
CT
CKGR
CB
CACS
COM
CJUS
CARSON
CL
COUNTERTERRORISM
EG
ECON
ETTC
EFIN
EZ
ETRD
EUN
ELAB
EU
EINV
EAID
EMIN
ENRG
ECPS
EN
ER
ET
ES
EPET
EUC
EI
EAIR
EAGR
EIND
EWWT
ELTN
EREL
ECIN
EFIS
EINT
EC
ECONEFIN
ENVR
ECA
ELN
EFTA
EXTERNAL
EINVETC
ENIV
EINN
ENGR
EUR
ESA
ENERG
EK
ENGY
ETRO
ETRDEINVECINPGOVCS
ETRDEINVTINTCS
ENVI
ESENV
ELECTIONS
ECUN
EINVEFIN
ECIP
EINDETRD
IV
IR
IS
IZ
IAEA
IN
IT
ICTY
IQ
ICAO
INTERPOL
IPR
INRB
IRAJ
INRA
INRO
IO
IC
ID
IIP
ITPHUM
IWC
ISRAELI
IRAQI
ICRC
IMO
IF
ILC
IEFIN
INTELSAT
IL
IA
IBRD
IMF
INR
IRC
ITALY
ITALIAN
KGIC
KDEM
KTIP
KOMC
KNNP
KWBG
KU
KPAL
KGHG
KAWK
KISL
KPAO
KHLS
KSUM
KSPR
KJUS
KCRM
KGCC
KPIN
KDRG
KTFN
KG
KBIO
KHIV
KSCA
KN
KS
KCOR
KZ
KE
KFRD
KIPR
KPKO
KNUC
KMDR
KPLS
KOLY
KUNR
KIRF
KIRC
KACT
KRAD
KCOM
KMCA
KV
KHDP
KVPR
KDEV
KWMN
KMPI
KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG
KCFC
KTIA
KPRP
KAWC
KCIP
KCFE
KOCI
KTDB
KMRS
KLIG
KBCT
KICC
KGIT
KSTC
KPAK
KNEI
KSEP
KPOA
KFLU
KNUP
KNNPMNUC
KO
KTER
KHUM
KRFD
KBTR
KDDG
KWWMN
KFLO
KSAF
KBTS
KPRV
KNPP
KNAR
KWMM
KERG
KFIN
KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG
KTBT
KCRS
KRVC
KSTH
KREL
KNSD
KTEX
KPAI
KHSA
KR
KPWR
KWAC
KMIG
KSEC
KIFR
KDEMAF
MOPS
MARR
MNUC
MX
MASS
MCAP
MO
MIL
MTCRE
ML
MR
MZ
MPOS
MOPPS
MTCR
MAPP
MU
MY
MA
MG
MASC
MCC
MEPP
MK
MTRE
MP
MDC
MAR
MEPI
MRCRE
MI
MT
MQADHAFI
MD
MAPS
MUCN
MASSMNUC
MERCOSUR
MC
OVIP
OPDC
OPRC
OIIP
OFFICIALS
OSAC
OAS
OEXC
ODIP
OREP
OFDP
OTRA
OSCE
OPIC
OECD
OPCW
OSCI
OIE
OIC
OTR
OVP
PARM
PREL
PTER
PHUM
PGOV
PINR
PINS
PREF
PK
PE
PBTS
POGOV
PROP
PINL
PL
POL
PBIO
PSOE
PHSA
PKFK
PO
PGOF
PA
PARMS
PORG
PM
PMIL
PTERE
PF
PALESTINIAN
PY
PGGV
PNR
POV
PAK
PAO
PFOR
PHALANAGE
PARTY
PRGOV
PNAT
PROV
PEL
PINF
PGOVE
POLINT
PRL
PRAM
PMAR
PGOVLO
PHUMBA
PHUS
PHUMPREL
POLITICS
PEPR
PSI
PINT
PU
POLITICAL
PARTIES
PECON
SOCI
SY
SENV
SA
SP
SNAR
SG
SCUL
SR
STEINBERG
SF
SW
SU
SL
SMIG
SO
SN
SHUM
SZ
SYR
ST
SANC
SC
SAN
SIPRS
SK
SH
SI
TS
TU
TX
TBIO
TW
TSPA
TH
TIP
TI
TRGY
TC
TR
TT
TERRORISM
TO
TFIN
TD
TSPL
TZ
TPHY
TK
TNGD
TINT
TRSY
TP
UK
UN
US
UNGA
UNSC
UNO
UNMIK
UV
UY
UP
UG
USEU
USUN
UZ
UNESCO
UE
UAE
UNEP
USTR
UNHCR
UNDP
UNHRC
USAID
UNCHS
UNAUS
UNCHC
Browse by classification
Community resources
courage is contagious
Viewing cable 09LONDON1069, RBS EXECUTIVES SAY “MEA CULPA” - AND SHARE PLANS
If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs
Understanding cables
Every cable message consists of three parts:
- The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
- The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
- The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #09LONDON1069.
Reference ID | Created | Released | Classification | Origin |
---|---|---|---|---|
09LONDON1069 | 2009-05-06 14:02 | 2010-12-13 23:11 | CONFIDENTIAL | Embassy London |
VZCZCXYZ0012
PP RUEHWEB
DE RUEHLO #1069/01 1261457
ZNY CCCCC ZZH
P 061457Z MAY 09
FM AMEMBASSY LONDON
TO RUEHC/SECSTATE WASHDC PRIORITY 2217
INFO RHEHNSC/NSC WASHDC PRIORITY
RUEHBS/USEU BRUSSELS PRIORITY
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
Wednesday, 06 May 2009, 14:57
C O N F I D E N T I A L LONDON 001069
SIPDIS
TREASURY FOR MEYER AND WINN
EO 12958 DECL: 5/6/2014
TAGS ECON, EINV, UK
SUBJECT: RBS EXECUTIVES SAY “MEA CULPA” - AND SHARE PLANS
TO RESTORE BANK’S STANDING
Classified By: Acting Deputy Chief of Mission Mark Tokola for reasons 1 .4 b and d.
¶1. (C) Summary. Apologizing for the bank’s past excesses, senior Royal Bank of Scotland executives acknowledged that ambition drove the company to overreach and pursue investments with quick returns, which landed the bank in the deep trouble it is now. Bailed out by the UK government, which now has a 70 percent share, RBS is a pursuing a multi-year plan, with annual benchmarks, to right itself and become a profitable business again. RBS executives told visiting emboff in an April 28th meeting at the company’s headquarters in Scotland that this plan would include spinning off retail and commercial activity in Asia and pursuing cost savings of GBP 2.5 billion by 2011. Regarding the overall economic climate, RBS’s chief risk analyst was grim and thought the signs of recovery were delusory. He predicted that current upheavals in the financial services sector will continue, and that a return to “narrow banking” was possible. End Summary.
¶2. (C) RBS is acknowledging and apologizing for its mistakes, said Senior Economic Advisor, Stephen Boyle. Sir Tom McKillop, chairman, and Sir Fred Goodwin, former chief executive, have apologized to shareholders, the public, members of Parliament’s Treasury Select Committee, especially for the bank’s ill-timed acquisition of Dutch bank ABN Amro, Boyle stated. Proper due diligence on the purchase was not done, and the market timing could not have been worse. RBS executives had rigorously (if not blindly, Boyle added) pursued a vision of becoming one of the leading global banks, and this led to disastrous acquisitions.
¶3. (C) The lesson learned is that RBS must concentrate on its core businesses to recover strength and repay the British taxpayer. The bank, Boyle stated, is the process of designating core and non-core businesses, and defining a one-year, three-year and five-year strategy to reach its goals. Among the measures will be to run down or sell outright retail and commercial activity in Asia, and reduce dramatically capital intensive instruments like project finance. RBS intends to narrow the activities of its U.S.-based Citizens Financial Group, which lost $1.4 billion in the fourth quarter 2008. Several bank branches will be closed, and Citizens, like other RBS operations, will exit most activities outside its core “market footprint.” In the UK, RBS will limit itself to traditional retail and commercial activities, and some insurance-related work. It will also hold on to Ulster Bank.
¶4. (C) Another key component in re-structuring is cost reductions, with a goal of savings of GBP 2.5 billion by 2011, said Boyle. This will be done primarily through downsizing, with an expected 9,000 job cuts just in the UK alone, and thousands elsewhere in global operations. Staff reductions will be focused on those in IT, out-sourcing and physical plant management.
¶5. (C) Much of the success of RBS’ restructuring will depend on overall economic conditions, argued Peter Nathaniel, senior risk analyst. Selling off businesses, for example, requires suitable buyers. However, at least for next 18 months, the global economic recovery will be weak, at best, he said. While there are been a few positive indicators in the past month, no one should breathe a sigh of relief. The level of sovereign indebtedness and the cost of government borrowing will lessen chances for a quick and sustainable turnaround, he said. The UK government is in particular trouble, and will find itself at a disadvantage in terms of competing for capital, without a significant rise in interest rates - but that will also raise interest rates on its debt. He faulted HMG for being slow off the mark to address the crisis, and was particularly critical of what he said was the government’s tepid response in the fall and early winter.
¶6. (C) Speculating about the future of banking, Nathaniel predicted that de facto, there will be a return to narrow banking practices. The number of companies with diversified financial activity will be small in number, and even those exist will have high capital reserves, either adopted voluntarily or imposed by regulators, that will reduce liquidity, As an additional effect, higher reserves will limit risk-taking and could hamstring innovation. He predicted that boutique banks specializing in limited and defined market niches will emerge in the wake of the crisis, while banks like RBS will return to traditional banking activity.
Comment:
¶7. (C) Meetings were held in RBS’ Headquarters in Gogarburn, a 350,000 square foot building on a 78-acre site, which opened in late 2005. The building reflects the ambition of its leaders and its many vacant offices a sign of its new reality. While the executives were chagrined about some of RBS’ acquisitions, they still seemed reluctant to acknowledge there might have been other missteps. Former Chief Executive Sir Fred Goodwin has been particularly criticized for his bonus of GBP 2.8 million which he received in addition to his salary of GBP 1.3 million in 2008. While RBS Chair McKillop has made a more broad-brush apology, Goodwin has only admitted that the purchase of ABN AMRO was a mistake. In the public’s eye, RBS has a lot more explaining to do.
Visit London’s Classified Website: http://www.intelink.sgov.gov/wiki/Portal:Unit ed_Kingdom
TOKOLA