The loss of trust in RBS reflected more than just financial collapse. It was also personal, with former CEO Sir Fred Goodwin cast in the role of pantomime villain. A month before the record £24,1bn loss was announced, Sir Fred - also known as "Fred The Shred" for his cost-cutting ways - had stepped down after eight years in charge, during which he had transformed RBS from a regional bank to a global name. His success brought him the titles of international businessman of the year and European banker of the year, and a knighthood from Queen Elizabeth.All this changed after the collapse of RBS. He became "the world's worst banker" and was named among the 25 people most responsible for the global financial meltdown. There were calls for his knighthood to be revoked. The clamour for his head was sparked not just by the bank's collapse but by his behaviour afterwards. The collapse cost thousands of jobs, but Goodwin walked away with millions of pounds. There was particular anger at his attempt to hang on to a £700 000 annual pension. His home was vandalised, as was the bank's Edinburgh headquarters. RBS and Goodwin had become the visible faces of corporate greed.
The result of the collapse, and ensuing government bailout, was effective nationalisation. The British government owns nearly 70% of RBS ordinary shares. The new management announced recently it was considering a multibillion-pound share issue to stop state ownership rising further. This, after the share price had fallen by more than 98% from its 2007 peak.
A recent new scandal, in which the bank was accused of blackmailing companies by demanding they sign it up as an investment banking adviser in return for credit, hasn't helped the image. Neither has the bank's admission that it is still a long way from "stable and sustainable" banking.
New management says its recovery plan aims to turn the operation into "one of the world's most admired, valuable and stable universal banks". Potential strategies include reviving former niche banking brands such as Williams and Glyn's, and selling them as part of an asset-shedding programme.
