Aim
The intent of this study is to discourse the alteration in Royal Bank of Scotland indicated by the company ‘s nationalisation in 2008. Stockholders lost the most portion of the company in favor of the authorities and direction of the bank had to be changed. The intent will be fulfilled by analysing the procedure of nationalisation and its deductions for RBS.
Theoretical literature provides a batch of theoretical accounts of alteration direction and strategic direction. For illustration, Ansoff ( 1987 ) theoretical account suggests four quarter-circles of scheme. Companies can turn by perforating the market and winning larger market portion while rivals portion will shrivel. Firms can besides develop their key merchandises which are their strength and this will be a scheme for enlargement. The 3rd Ansoff ‘s ( 1987 ) scheme would be to diversify the merchandises and operations to accomplish growing.
Finally, the company can take to prosecute market development which is come ining new geographical countries or new niches that will assist bring forth higher gross. The instance of RBS represents this concluding theoretical account of market development. The Bankss pursued the new market of mortgage backed securities in the US through acquisition of ABN Amro. This scheme appeared to be unsuccessful and led the bank into a place where accounting losingss reached enormous value of over 30 billion lbs in 2008 and led to nationalisation of the bank by the UK authorities.
Company Overview
Royal Bank of Scotland Group plc is a banking corporation with its subdivision – Royal Bank of Scotland ( RBS ) that is dispersed around United Kingdom with about 700 sub-branches, located in Scotland, England and Wales and is one of the largest Bankss in UK. It was founded in 1727 and is the first bank presenting overdraft handiness to its clients. Since its foundation, RBS expanded greatly, with large figure of acquisition trades, such as its acquisition of NatWest Group in 2000, First Active ( Ireland ) , Charter One ( USA ) , Churchill Insurance ( UK ) and ABN Amro ( Netherlands ) in 2007 ( House of Commons Treasury Committee, 2008 ) .
The Royal Bank of Scotland still uses a privilege of publishing its ain bills. Until 2009, it was one of the chief stockholders of the Bank of China, but had to sell its portions after the planetary fiscal crisis impact. RSB is still in the list of universe ‘s largest Bankss, being on 6th place in 2003, 10th in 2007 and 19th in 2008 ( Financial Ranks Online, 2009 ) .
Fiscal public presentation of RBS was altering in the last old ages. In 2005 group runing net income rose by 16 % , with entire dividend for the twelvemonth addition by 25 % , with capital and net incomes addition. During 2006, RBS showed great consequences and go oning growing, with increased dividends by 25 % with entire income growing by 10 % . With unstable place in the market and in planetary fiscal system, RBS had some jobs, but directors were working toward control of the state of affairs, nevertheless growing of the operating net income decreased by 9 % , net incomes per portion by 18 % and return on equity – 19.9 % . The company faced large net losingss of around 7.9 billion lbs. In the 2009 bank entered difficult times with reorganisation in direction field and in construction. ( RBS Annual Report, 2005-2009 ) .
Due to altering state of affairs in the planetary economic system, in 2008 Royal Bank of Scotland announced its greatest loss in the bank ‘s history with the sum of 692 million lbs that was connected to unhealthy loans and 71 billion lbs as a consequence of wrong trade of geting ABN Amro ( Bradley, 2009 ) . Prior to the planetary fiscal crisis RBS have had great net income borders and was a well-thought-of trade name with long history. And it is necessary to advert that the bank was at great place in footings of confronting crisis, with small impact until the determination of acquiring ABN Amro, which brought assorted jobs.
In 2008-2009 UK citizens were under daze of the fact that one of the largest United kingdom banking system representatives had unbelievable losingss and unpredictable hereafter. At this place RBS had one manner to last – seek authorities support. However non all UK Bankss suffered from effects of planetary fiscal crisis, which can be connected with accurate and carefully planned direction scheme. RBS have got some capital of about 2 billion lbs from selling its portion in Bank of China and after giving up portion of Linea Directa, a Spanish insurance company for approximately 4.5 billion lbs. However, it did non assist to do a extremist alteration of the state of affairs ( Bradley, 2009 ) .
Harmonizing to Hester, current Chief Executive of the RBS Group ( 2009 ) , great losingss of the Group had nil to make with direction of concerns as their public presentation was profitable. However jobs appeared chiefly in two divisions – Global Banking & A ; Markets and Asia Retail & A ; Commercial Banking. Their net incomes were crushed by market and recognition losingss, within fast alterations in the economic conditions. At the same clip top directors of the Royal Bank of Scotland were confronting hazards of acquisition and had limited clip to do determinations. Global fiscal crisis had its impact in different states, impacting economic systems and markets particularly in footings of exchange rates. Here, lessening in greatest exchange rate had an influence on farther public presentation of the bank and altering market place intensified the state of affairs ( Hester, 2009 ) .
In malice of the fact that fiscal state of affairs became critical for many Bankss, RBS was still holding serious and stable concern. Top direction was taking stairss to retrieve from crisis effects, in order to return capital and supply stable land for future operation such stairss included using to authorities support. The strategic program for recovery was supposed to be finished in 2009, meanwhile the focal point is on long-run client franchises, quality and profitableness.
Royal Bank of Scotland can be an illustration of the fact that in footings of planetary fiscal crisis even large and powerful administrations can confront danger. It is the biggest UK company that suffered from the planetary economic clang. Today it is still far from recovery, holding bad loans and loss before revenue enhancement in the beginning of 2009 was around 44 million lbs. From the prognosiss, 2009 and 2010 will still be disputing for the RBS with chief focal point on debt returns. Now, after current direction alteration, managers of RBS are more confident of future recovery and success ( The Telegraph, May 2009 ) . New Chief Executive supports the place that direction must remain unagitated and take stairss for a slow but effectual recovery, instead than fast and blowing schemes in order to salvage more that to pass ( Murchie, 2009 ) .
However, human resource direction of the bank is non so confident and be aftering to shorten around 9000 occupations, which is about 20 % . It is believed that this action will assist to diminish costs of around 3 billion dollars ( Global Crisis News, 2009 ) . Furthermore, RBS represented the worst consequences in the market, being at the underside of banking sector in September 2009 ( Frei, 2009 ) .
Aspects of Nationalization
Harmonizing to Encyclopedia Britannica, nationalization is “alteration or premise of control or ownership of private belongings by the state” ( Encyclopedia Britannica, 2009 ) with several fluctuations in the types and motivations. Nationalisation normally appears through assets or portions taken over, and this can assist the company to go on its concern but under control of the authorities. If the company is nationalised by authorities it can go on to bring forth and run, acquiring some gross and hold some returns on portions. Normally this procedure is followed by structural reorganization, including traditional administrative scheme and manner of control ( Backhaus and Wagner, 2004 ) .
As a fact, nationalization can come in the signifier of expropriation, if the old proprietors do non acquire compensation for the concern and in the signifier of deliverance tool or governmental support. Not every company can acquire such support ; it is normally a privilege of the companies and corporations that have national importance and heritage. There is a figure of illustrations in the UK history of nationalization, which helped to reorganize the construction of the company every bit good as to acquire fiscal support ( Floud and McCloskey, 1994 ) . It is believed that nationalization started in the UK in 1908 after the constitution of Port of London Authority with the necessity of production control ( Beardshaw and Ross, 2001 ) .
Some researches mention negative effects of nationalization, indicating that it can damage economic system and banking sector. One of the jobs is diminishing fight, particularly in banking sector ( Lee, 2007 ) . Besides, fiscal establishments and authorities avoid take parting in direction as it can take to farther callbacks of nationalization. And when the company fails to utilize direction as an appropriate tool, the opportunity of mistake gets bigger with a cause of future nationalization ( Cuthbert and Dobbins, 1980 ) . Chiefly, nationalization has political or economic facets and motivations. When authorities has power to command specific corporations and their production every bit good as fiscal place, it can utilize the company as an instrument to rectify economic system. In add-on, authorities can supply more accurate and efficient capital and assets variegation.
If the company is to the full nationalised, authorities becomes the proprietor of the concern and has to cover with its jobs and debts. Nationalization is connected to economic system, here in order to hold more attractive economic system, authorities seeking to brace fiscal system through bad assets escape. There are still debates around the necessity of nationalization and its jobs. On the other manus, there is a position that this procedure must hold impermanent term, and authorities Acts of the Apostless more as defender of the company or bank for the difficult period. However, one must see that the procedure of nationalization must be done right and carefully, with alteration of all advantages and disadvantages ( Richardson, 2009 ) .
Looking at the advantages of the nationalization foremost comes its ability to salvage the company or in our instance the bank from heavy and mindless assets, which were collected over the clip and are stand foring yarn of bankruptcy. This will include separation such assets from the concern leting runing more expeditiously. Unnecessary assets so can be put for sale or managed by another administration and the bank, free from debatable sectors can continues to run.
In add-on, nationalisation can assist to reconstitute top direction, acquiring rid of dilettante attack of runing the concern ( Richardson, 2009 ) . RBS is besides back uping this fact and harmonizing to Montia ( 2009 ) , is now selling some of its plus direction concern with managed capital of 30 billion lbs. In add-on, it is possible that RBS will hold to sell more of its concern and even at the really low monetary value that is now at the market. It is besides a portion of the Chief Executive ‘s recovery program for the RBS – to divide troubled divisions from working 1s with farther merchandising of non-core parts of the concern ( Bradley, 2009 ) .
Without sing the advantage of nationalization, authorities can go on to give money support to the Bankss that are large and of import for the economic system, but this can make the state of affairs, where nil will be changed and achieved. Government support can give a privilege of a competitory advantage, for illustration, Northern Rock could cut its monetary values in mortgages and insurance and pull new clients.
Among disadvantages of nationalization is direction job. In world it is really hard to happen right and appropriate human capital for each bank in order to pull off them decently. Still there will be a opportunity of hazards sing new adoptions, credits and market place. And these hazards are now to be taken by the proprietor. Again the job of unneeded assets appears and Bankss need to acquire rid of so, fundamentally on really low monetary values. In this state of affairs market will hold clear advantages of nationalization, while Bankss will endure. In add-on, nationalization is really ambitious to the authorities. It must happen labour force and money to finance the procedure. Future public presentation of the company besides depends on who will be in charge – could be authorities itself or another pull offing company ( Richardson, 2009 ) .
In order to avoid subsequently jobs, other options and determinations must be revised before the concluding determination of nationalization. The company must remain efficient and respond to the market and planetary alterations in clip. Management must remain unfastened and react rapidly in order to avoid critical point.
Change Process: Nationalization of RBS
In the beginning it is of import to discourse planetary economic state of affairs which caused jobs in RBS and necessity of taking extremist waies, including nationalization. UK banking sector was under force per unit area of economic crisis 2006-2009 and is still retrieving. It all started from the US sub-prime mortgage crisis and reached the remainder of the universe at the beginning of 2007 with increasing debts. Most of all crisis hit banking sector, cardinal Bankss and international Bankss worldwide. As a consequence the Bank of England had to diminish involvement rates, and all Bankss were under hazard of failure ( Rayner, 2008 ) .
Current crisis was named the worst for the last 75 old ages with negative effects on many types of concerns and client ‘s outlooks ( Altman, 2009 ) . During this clip period direction was confronting great challenges, particularly risk direction. In add-on, it is obvious from current crisis pattern that hazard direction can assist to win the race and utilizing assorted theoretical accounts and schemes affairs ( Varma, 2009 ) . Spreading from United Stated over Europe and UK crisis attacked banking sector. UK ‘s economic system is connected to the US through trade and loans and adoptions. As a consequence of the go oning bankruptcy of Bankss, some tried to avoid it through aid petition from authorities. The first bank that was to the full nationalised in UK is Northern Rock, followed by the Lloyds Banking Group with partial control from the authorities.
Some research workers put nationalization under significance of deliverance, and as a fact non all Bankss or companies were acquiring such rescuing bundle from the UK authorities. In the instance of Northern Rock, determination was made harmonizing to the point that this bank is particular and its failure can do turning instability in the UK banking sector ( Tomasic, 2008 ) . This besides can be true about the Royal Bank of Scotland as it is bank with great history, stand foring Scots state as portion of Britain, with its ain printed bills and heritage. In malice of the fact that many Bankss across the universe were put into critical state of affairs, holding picks of selling merely assets or Bankss itself, non many were rescued ( Woods, Humphrey, Dowd, Liu, 2009 ) .
In the study of the House of Commons Treasury Committee ( April, 2008 ) it is discussed that in October 2008 RBS introduced new program of deliverance with capital sum of 20 billion lbs, nevertheless, stockholders were acquiring unattractive returns and authorities had to deliver RBS through acquisition of major portion of its portions. At that clip point nationalization was inevitable in relation to future life of the RBS. Looking at the managerial jobs that caused such effects it can be pointed that RBS ‘s top direction along with its anterior Chief Executive, Sir Fred Goodwin was taking over optimistic determinations every bit good as misinterpretation of the critical state of affairs.
Incorrect determinations were made due to fast procedure of the economic deterioration in UK and globally. Harmonizing to Hester, RBS was enduring from great downswing due to anterior determinations. In add-on incorrect hazard direction schemes that were adopted at that clip made even worse, in peculiar control issues. It seems that RBS had a great balance sheet for a long clip period and was non prepared for immediate alteration. In 2007, RBS made a important determination of taking over ABN Amro bank, in cooperation with Fortis and Santander Bankss, this resulted in RBS ‘s independency of private organisation. Acquisition of the ABN Amro was a incorrect measure to take in the yarn of economic crisis which made RBS unable to complete its strategic program. Newly formed group was defenceless in the declining state of affairs of market alterations ( House of Commons Treasury Committee, 2008 ) .
The measure of immense outgo, geting ABN Amro in incorrect clip, could hold been avoided by directors of RBS. Even more, loss of around 72 billion Euros intensified critical state of affairs. Managerial determinations of this acquisition were made without unwrap of recognition and plus jobs in ABN Amro prior to the trade. In add-on, this determination was influenced by stockholders, here 94.5 % of them agreed on acquisition and it may look that they pressed top direction to complete the trade.
However, RBS managers and top directors agreed about the trade with unanimity. Consequence of this trade is large loss in 2008 of around 30 billion lbs alternatively of false net income. The alteration associated with acquisition of ABN Amro was a representation of Ansoff ‘s ( 1987 ) market development scheme. RBS attempted to spread out into the US market geographically and in add-on the company attempted to gain from covering with US mortgage backed securities. However, the failure of the scheme caused the Bankss to endure losingss and bespeak the aid from the authorities which acquired the portions of the concern.
The procedure of nationalization of the RBS began with basic deliverance plan. In October 2008, RBS started new strategic plan in order to increase capital. One of the solutions was to offer ordinary portions at a monetary value of 65.5 pence per portion. The offer consisted portions for 15 billion lbs. HM Treasury has got around 12 % for 5 billion lbs and subsequently on around 57.9 % of portions were acquired by the Government. Decisions that were made by RBS and Government were directed to the accomplishment of more stable bank place and extra resources for strength and farther capital expansion. Government and the bank deny that there was a scheme of entire nationalization and when fiscal place of RBS will be stable, it will once more be under private ownership ( Webster, 2008 ) .
It can be argued that this nationalisation is an illustration of emergent alteration instead than planned scheme ( Whittington, 1993 ) . Emergency was caused by the high dependence of the bank on the influx of hard currency for prolonging its operations. Whittington ( 1993 ) proposed four basic attacks to scheme. These can be classified as classical, systematic, evolutionary and processual. Classical attack suggests that the company ‘s scheme would be to maximise net income. Evolutionary attack suggests that the environment will choose the strongest concerns. The systematic attack suggests that societal environment will find concern scheme. The alteration in RBS is processual because it implies that the company consists of different stakeholders who have their ain involvements and aspirations. The end of the direction is to fulfill the involvement of each stakeholder. If RBS was non nationalized and this changed was non made, the society, employees and even stockholders would endure negative effects. However, it can be argued that the nationalisation might hold hurt stockholders even more because the value of their equity has gone down as the portion monetary value plummeted.
PEST Analysis of RBS
The alteration in the organisation connected with the procedure of nationalisation can be reflected in the PEST analysis of the company:
Political Factors
– The Ownership of the bank is changed in favor of the UK authorities ;
– Bail out was done out of the UK authorities budget ;
– Support of the authorities will hold positive effects on fiscal affairs ;
– Government ‘s support will do directors to move in the involvements of the authorities instead than stockholders.
Economic Factors
– Interest rates declined ; so demand for loaning can lift ;
– Financial Crisis in the UK and the universe may foster deteriorate public presentation of the Bankss and extra capital may be required from the authorities.
Social Factors
– The alteration in the bank is besides connected with restructuring of the company and ballad offs ;
– Rising unemployment is a negative effect of concern failures such as RBS.
Technological Factors
– Technologies are invariably bettering and this facilitates the banking concern of RBS because some costs are being reduced and the work is being optimised ;
– However, since the ownership of the company changed from stockholders to the authorities, direction will be instead interested in run intoing the aims of the authorities instead than optimizing the work with new engineerings.
Decision
Royal Bank of Scotland is now about wholly owned by British authorities – around 70 % . Today, RBS is among first Bankss to come in new plan named plus protection program. In 2009 RBS had suffered of worst loss of about 24.1 billion lbs and adopted program of endurance. Some analysts point that as the RBS is non to the full nationalised it can still confront the hazards and neglect to fulfill investor ‘s outlooks. As resent investor ‘s rate increased with great returns there is figure of petitions to hold RBS to the full nationalised ( Werdigier, 2009 ) .
It is difficult to judge whether RBS could hold avoid nationalization in the state of affairs when it is difficult to turn back and see other picks. However, there were some managerial errors that could hold been avoided. Poor alteration direction was non ready to confront troubles and acquire over them. Besides the acquisition of the ABN Amro that was already discussed, there was another managerial error of go oning dividend addition after the alteration in net incomes that were diminishing. Trying to pull new investors with high dividends and delight current stockholders, direction put the concern under hazard of failure. After the ABN Amro trade, this, along with unhealthy assets that were non sold in clip had lead RBS to the concluding measure of nationalization.
Bing attractive for investors and stockholders for a short clip period RBS created effects where investors of the company became most affected by nationalization. Prior to the crisis RBS was a profitable company with attractive place. Subsequently on there was a lessening of the UK portions market and dramatic bead in RBS portion monetary values.
Overall at the point that RBS entered in 2008, nationalization seems to be the last opportunity of endurance. It can give some excess clip to do new strategic program and to retrieve from the fiscal instability. There is still a opportunity for RBS in the hereafter to go profitable, independent and private company.
Mentions
Altman, R.C. ( 2009 ) The Great Crash, 2008, Foreign Affairs, January/February [ Online ] . Available at hypertext transfer protocol: //www.foreignaffairs.com/articles/63714/roger-c-altman/the-great-crash-2008 # [ Accessed 27 October 2009 ] .
Ansoff, I. ( 1987 ) Strategic Management, New York: Wiley
Backhaus, J.G. , Wagner, R.E. ( 2004 ) Handbook of public finance, Birkhauser, pp. 554.
Beardshaw, J. , Ross, A. ( 2001 ) Economicss: a pupil ‘s usher, Pearson Education, pp.740.
Bradley, J. ( 2009 ) ‘RBS tipped for ?1.5bn Net income a Year After Crash ‘ , The Scotsman, July 19, [ Online ] . Available at hypertext transfer protocol: //business.scotsman.com/business/RBS-tipped-for-15bn-profit.5473605.jp [ Accessed 29 October 2009 ] .
Cuthbert, N. , Dobbins, R. ( 1980 ) ‘Managerial Engagement by Pension Fundss and Other Financial Institutions ‘ , Managerial Finance, Vol.6, 3: 43-48.
Encyclopedia Britannica ( 2009 ) ‘Nationalization ‘ , [ Online ] . Available at hypertext transfer protocol: //www.britannica.com/EBchecked/topic/405796/nationalization [ Accessed 28 October 2009 ] .
Fiscal Ranks ( 2008 ) ‘World ‘s Largest Banks – 2008 Update ‘ , [ Online ] . Available at hypertext transfer protocol: //financialranks.com/ ? p=69 [ Accessed 27 October 2009 ] .
Floud, R. , McCloskey, D.N. ( 1994 ) The Economic History of Britain since 1700 3 volume set, Cambridge University Press, UK, pp.400.
Frei, E. ( 2009 ) ‘RBS leads 100, London banking sector lower ‘ , Finance Markets, September 21, [ Online ] . Available at hypertext transfer protocol: //www.financemarkets.co.uk/2009/09/21/rbs-leads-100-london-banking-sector-lower/ [ Accessed 29 October 2009 ] .
Global Crisis News ( 2009 ) ‘Royal Bank of Scotland to cut 9000 Jobs ‘ , April 7, [ Online ] . Available at hypertext transfer protocol: //www.globalcrisisnews.com/europe/royal-bank-of-scotland-to-cut-9000-jobs/id=775/ [ Accessed 29 October 2009 ] .
Hester, S. ( 2009 ) ‘Group Chief Executive ‘s Review ‘ , RBS Annual Report and Accounts 2008, [ Online ] . Available at hypertext transfer protocol: //www.rbs.com/microsites/gra2008/gce_review/index.html [ Accessed 27 October 2009 ] .
House of Commons Treasury Committee ( 2008 ) ‘Banking Crisis: Covering With the Failure of the UK Banks ‘ , 7th study of session 2008-2009, April 21, [ Online ] . Available at hypertext transfer protocol: //www.publications.parliament.uk/pa/cm200809/cmselect/cmtreasy/416/416.pdf [ Accessed 27 October 2009 ] .
Lee, Kam-Hon ( 2007 ) ‘Chinese Banking in Asia ‘s Market Economies ‘ , Marketing Panoramic Review, Vol. 2: 24-26.
Montia, G. ( 2009 ) ‘RBS to sell plus direction concern ‘ , September 28, [ Online ] . Available at hypertext transfer protocol: //www.bankingtimes.co.uk/28092009-rbs-to-sell-asset-management-business/ [ Accessed 29 October 2009 ] .
Murchie, K. ( 2009 ) ‘RBS boss frights ‘lost decennary ” , Finance Markets, September 13, [ Online ] . Available hypertext transfer protocol: //www.financemarkets.co.uk/2009/09/13/rbs-boss-fears- % e2 % 80 % 98lost-decade % e2 % 80 % 99/ [ Accessed 29 October 2009 ] .
Rayner, G. ( 2008 ) Financial crisis: Stock markets across universe autumn amid exigency bank deliverances, The Telegraph, 08 October, [ Online ] . Available at hypertext transfer protocol: //www.telegraph.co.uk/finance/financetopics/financialcrisis/3160869/Financial-crisis-Stock-markets-across-world-fall-amid-emergency-bank-rescues.html [ Accessed 27 October 2009 ] .
RBS Annual Report and Accounts ( 2005 ) [ Online ] . Available at hypertext transfer protocol: //www.shareholder.com/visitors/dynamicdoc/document.cfm? CompanyID=RBS & A ; documentID=1108 & A ; PIN=209446200 & A ; resizeThree=no & A ; Scale=100 & A ; Keyword=type % 20keyword % 20here & A ; Page=6 [ Accessed 27 October 2009 ] .
RBS Annual Report and Accounts ( 2006 ) [ Online ] . Available at hypertext transfer protocol: //www.rbs.com/microsites/gra2006/default.asp [ Accessed 27 October 2009 ] .
RBS Annual Report and Accounts ( 2007 ) [ Online ] . Available at hypertext transfer protocol: //www.rbs.com/microsites/gra2007/index.asp [ Accessed 27 October 2009 ] .
RBS Annual Report and Accounts ( 2008 ) [ Online ] . Available at hypertext transfer protocol: //www.rbs.com/microsites/gra2008/index.html [ Accessed 27 October 2009 ] .
Richardson, M. ( 2009 ) ‘The Case For and Against Bank Nationalization ‘ , VOX, [ Online ] . Available at hypertext transfer protocol: //www.voxeu.org/index.php? q=node/3143 [ Accessed 28 October 2009 ] .
The Telegraph ( 2009 ) ‘RBS expects bad loans to mount in 2009 ‘ , May 8, [ Online ] . Available at
hypertext transfer protocol: //www.telegraph.co.uk/finance/newsbysector/banksandfinance/5294644/RBS-expects-bad-loans-to-mount-in-2009.html [ Accessed 29 October 2009 ] .
Tomasic, R. ( 2008 ) ‘The Rescue of Northern Rock: Nationalization in the Shadow of Insolvency ‘ , Corporate Rescue and Insolvency, Vol. 1, 4: 109-111.
Varma, J.R. ( 2009 ) ‘Risk Management Lessons from the Global Financial Crisis for Derivative Changes ‘ , Indian Institute of Management working paper, February, pp. 2-26.
Webster, P. ( 2008 ) ‘Royal Bank of Scotland under State Control ‘ , The Times, October, 13, [ Online ] . Available at hypertext transfer protocol: //business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article4932250.ece [ Accessed 29 October 2009 ] .
Werdigier, J. ( 2009 ) ‘Record Loss at Royal Bank of Scotland ‘ , The New York Times, February 26, [ Online ] . Available at hypertext transfer protocol: //www.nytimes.com/2009/02/27/business/worldbusiness/27rbos.html? _r=1 [ Accessed 27 October 2009 ] .
Forests, M. , Humphrey, C. , Dowd, K. , Liu, Y. ( 2009 ) ‘Crunch Time For Bank Audits? Questions of Practice and the Scope for Dialogue ‘ , Managerial Auditing Journal, Vol. 24, 2: 114-134.
