BBC News – RBS fined £56m over 2012 computer glitch by regulators

[Legal Beagles]

Royal Bank of Scotland (RBS) has been fined £56m by regulators after a 2012 software issue left millions of customers unable to access accounts. RBS, NatWest, and Ulster Bank customers were affected in June 2012 after problems with a software upgrade. The Financial Conduct Authority fined RBS £42m, and the Prudential Regulation Authority fined the […]

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[enaid]

Re: BBC News – RBS fined £56m over 2012 computer glitch by regulators

Jeeeez we will have to bail em out again if this carries on, every time they cock up heads should roll and penalties taken from the people involved in the cock ups not from our bloody money.

[dogtired]

Re: BBC News – RBS fined £56m over 2012 computer glitch by regulators

I was in the bank that day trying to get my money and to find out if our mortgage payment had gone out.
Young women with a toddler and small baby in tears as she had no money to pay her rent or to get food for the kids, ( she was still there when I left)
I was lucky I was able to return an item to a shop so had a little for my shopping.
If I was able to I would change banks and still may do so if these "errors" continue, notice on the web site this morning that the "system" is to be updated (again) from early hours on Saturday hope they don't mess up again.

[leclerc]

Re: BBC News – RBS fined £56m over 2012 computer glitch by regulators

Jeeeez we will have to bail em out again if this carries on, every time they cock up heads should roll and penalties taken from the people involved in the cock ups not from our bloody money.

As a result of all the things we have so far done as a majority shareholder of RBS, the majority of their IT heads left and went to.......Lloyds Bank(where surprisingly there have been very little IT glitches ). RBS subcontracted theirs out to India and the rest......

The above fine is from the UK regulator with the irish regulator fining Ulster Bank £2.5 million.

Does anyone know how much RBS has been fined this year(including all Irish and US regulators with the UK one)?

At this rate, you're right, they'll need a bail out to pay all their fines that they're racking up.

[vanman]

Re: BBC News – RBS fined £56m over 2012 computer glitch by regulators

this maybe a stupid question
but where does all the fine money go to.

[vanman]

Re: BBC News – RBS fined £56m over 2012 computer glitch by regulators

sorted
But where does all this money actually go?
All firms regulated by the FCA have to pay a membership fee to cover the regulator's costs. Prior to April 2012, the money collected by the FSA went towards reducing these fees, quite substantially so in some years.
In effect, then, financial institutions fined by the regulator benefited from lower membership fees, although given that the FCA regulates about 26,000 firms, the numbers involved are pretty small.
Since April 2012, however, the money collected from fines has gone straight to the Treasury. Last tax year, after "enforcement fees" of £40m, the government received £341m in fines from financial institutions - not a significant sum relative to the government's total receipts of about £600bn, but a not insignificant bonus none the less.


so RBS which is 80% owned by the taxpayer get fined £56m and then pay it back to to the Treasury good deal.

[leclerc]

Re: BBC News – RBS fined £56m over 2012 computer glitch by regulators

http://news.sky.com/story/1377764/rb...ver-it-failure

The software company behind the issue has paid something but how much?

[vanman]

Re: BBC News – RBS fined £56m over 2012 computer glitch by regulators

UK banking fines should go to NHS

The shadow chancellor said the money - from banks fined for manipulating foreign exchange markets - should be used for "a wider good".
He said the fines could be included in the Autumn Statement to provide an "immediate boost" to the NHS.
Chancellor George Osborne has previously vowed to ensure the money will be used for "the public good".
Five banks were fined a combined £1.1bn by the Financial Conduct Authority (FCA) earlier this month for "failings" that put the "integrity" of the UK financial system at risk.

http://www.bbc.co.uk/news/uk-politics-30158810

[Tools]

Re: BBC News – RBS fined £56m over 2012 computer glitch by regulators

The fines go to the Treasury, the Government is entirely at liberty to decide where that money is spent. The story is just spin trying to give them the image of a modern day Robin Hood. Take from the rich (Banks) and give to the poor (NHS)

[vanman]

Re: BBC News – RBS fined £56m over 2012 computer glitch by regulators

The fines go to the Treasury, the Government is entirely at liberty to decide where that money is spent. The story is just spin trying to give them the image of a modern day Robin Hood. Take from the rich (Banks) and give to the poor (NHS)

forget its labor or the conservative party dont you think that it should go to the NHS

[Tools]

Re: BBC News – RBS fined £56m over 2012 computer glitch by regulators

I certainly do, that or any other service that is under financial pressure that will benefit the general public.