Last updated on October 10th, 2016
RBS and Lloyds’ Banks Carve-Up
Call me stupid if you like, but there’s something particularly disturbing about the ethics of the planned carve-up of the big two banks rescued last year by our taxes. (see RBS and Lloyds in major shake-up for details)
Normal Practice During Business Mergers
If two companies merge or one buys out another, quite often they do the same line of business and a major financial attraction of this process is the savings from using common systems – like I.T., accountancy, management, office costs and all the other common costs like these.
They have a fancy word for it – synergy. A usual consequence when departments merge like this is for staff, say 30-50% of them in the affected areas, to lose their jobs
Otherwise one business will not have any I.T. function and the other might not have any office space for management. Things like that. At the very least they’ll need two managers instead of one!!!
Today’s UK Business World
Despite the activities of Fred “the Shred” Goodwin during the merger’s period of RBS, and despite the 10’s of thousands of jobs already lost at both banks since their highly public rescue, the banks now want to ditch ~4000 extra jobs as part of the forced splits!!! This means the companies will be short in many key areas of company running and control.
What am I missing? I don’t understand…
Oh yes I do! It’s a con.