RBS splashes the cash on parties
December 17, 2008
Banking giant, Royal Bank of Scotland, has been revealing its financial woes recently, and has taken the largest cash injection from the government’s banking bailout fund according to recent reports. Having taken around £20 billion from the government, the bank’s major shareholders are now taxpayers, with a stake of over 50 percent in the bank.
However, whilst the bank has gone cap in hand to the government for bailout cash, it was recently revealed that it has been splashing the cash o lavish parties for employees and executives.
Recent reports have claimed that the ailing bank threw a lavish party for its employees at a five star hotel in Edinburgh, and that this cost the bank the tidy sum of £300,000. Just a week or so later it was revealed that the bank had blown a further £30,000 on a lavish dinner at Blenheim Palace for executives, who were then being put up in a hotel costing £200 a night.
MP Norman Baker from the Lib Dem party said: ‘The banking world does not seem to realise that people out there are suffering. While they dance the night away, others are desperately trying to pay mortgages. It is a completely inappropriate use of what is taxpayers’ money.’
An official from RBS said: ‘The dinner was a long-standing commitment with our customers and allowed us to continue to enhance our working relationship. As a relationship bank we feel it is important to invest time with our customers and this dinner was an opportunity to build on these relationships. We are, as you would expect in the current circumstances, looking closely at all our planned events to make sure they are appropriate and relevant to our business.’
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