A shocking phone call from Scotland’s Royal Bank changed the whole story of RBS. Alistair Darlings, the former chancellor said that he was thrilled to the core when he received a phone call from RBS and been answered against his question about how long the bank might last.
Mr. Darlings finally reveals that he had the most shaken moments about the financial crisis that had begun long back the day when the credit crunch took place. Back in the year 2008 a call from Sir Tom McKillop from the Royal Bank of Scotland had made Alistair Darlings aware of the calamitous scale of credit crunch that would change the world.
He said to the BBC that he had to attend of the European Finance meetings of the ministers and where he was asked to come out to receive a call from the Chairman of RBS and heard him saying that the bank was haemorrhaging money. In reply to this he asked him how long the bank could last. He had an unbelievable reply answering that the bank will be running out of money this early afternoon.
The Government successively bailed out RBS, Halifax Bank of Scotland, and Lloyds TSB with billions pounds of amounts for the money of tax payers’. This story came after year of dramatic events that started in August 2007.
He said that it was not only the biggest crisis in the world but it is as big as the size of the entire economy of UK.
Lord Darling also said that if the government would not have intervened there might have been a “blind panic”. Later that year the RBS was bailed out by the tax payers and the government still owns a stake of 71% in this bank.
The EX-US Treasury secretary, Jack Lew said that he had never seen a situation where everyday get worse than the previous day so much that you have to come back revisiting to the fiscal policy to check the economic condition in order to enhance the recovery. He also added that we all know crisis would be coming in the future but not when and how.
Meantime Sir John Gieve also said that there would be o filling up of 2008’s financial crisis.