The Cost Of Banks

Consider that one year ago Royal Bank of Scotland (RBS) paid US$100 billion for ABN Amro. That seemingly impossible amount would now buy:

• Citibank (C) $22,5 billion (74% down)
• Morgan Stanley (MS) $10,5 billion (-72%)
• Goldman Sachs (GS) $21 billion (-67%)
• Merrill Lynch (MER) $12,3 billion (-77%)
• Deutsche Bank (DB) $13 billion (-71%)
• Barclays (BCS) $12,7 billion (-71%)

And still leave $8 billion change - with which you would be able to pick up General Motors (GM), Ford (F), Chrysler and the Honda F1 team.

Source: Financial Mail, December 19, 2008.

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Comment by Dr. Sebastian Uremadu

2008-12-20 13:10:49

This slump arising from global financial crisis only shows how bad financial management can bring down banks on their knees. In future our policy makers and managers of economies of nations should learn to put the specialists to manange in their areas of specialisations.

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