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Bailed Out Rbs Shuts Three Care Homes To Save £1.3M... But Boss Who Earns Five Times As Much Won't Take Pay Cut

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The Royal Bank of Scotland has been criticised over plans to close all three of its charitable care homes – just months after its chief executive pocketed a £7.7 million pay package.

The bank, which was bailed out with more than £40 billion of taxpayers’ money during the financial crisis, says the homes ran up total losses of £1.3 million in the last financial year.

RBS also claims the homes are under-occupied and that the properties are no longer suitable.

But staff have warned that the trauma of moving could kill some of the 40 frail residents, the eldest of whom is 105.

And campaigners battling to save the homes say the proposals are disgraceful, especially coming so soon after RBS chief executive Stephen Hester was awarded a £2 million bonus and shares worth up to £4.5 million on top of his annual £1.2 million salary.


The homes – in Harrogate, North Yorkshire; Canterbury, Kent; and Torquay, Devon – are run by a charity called the RBS Care Homes Foundation. The residents are mostly former employees of RBS and NatWest, which has been part of the RBS Group since 2000.


It is believed the company first mooted the plan to close down the homes in 2008. Last month, Lesley Davie, chairman of the trustees, wrote to all residents and staff to tell them about the proposed closures.

But a campaign group formed by the families of RBS pensioners says there is no reason why the homes cannot remain open. The group said that despite the loss last year, in 2009 the Trust actually had a surplus of more than £700,000.

They also said the buildings were perfectly suitable for care of the elderly, as highlighted by the ‘excellent’ ratings. And they added that the homes had vacancies only because RBS does not publicise them to its 300,000-strong pool of current and former employees.

The caring bankers strike again, I wonder why they aren't advertising the homes to it's own employees?

Could these properties be worth more as housing?

Is there more to this story than is being reported?

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I note the suspicion of a sub-plot regarding land here.

That aside, the uninterpreted story presents an utter disgrace.

Why is it necessary to pay anyone 7mil to manage some charitable care homes, it hardly takes a lot of commercial nous.

The solution here is so easy and painless, even for the chief exec concerned in reality, that it beggars belief that it has not been done.

I look forward to the views of those who are incandescent that tube drivers get an above average wage for their mole-like existence.

Edited by Laughing Gnome

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"the homes ran up total losses of £1.3 million in the last financial year."

How many hundreds of people are they looking after?

Why do I suspect it's going to turn out to be 6 healthy 70 year olds who go to vegas every weekend for a day trip.

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  • 311 Brexit, House prices and Summer 2020

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      • down 5% +
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