Page 8 - RBS TG

The Consortium banks' plans are focused on getting the

ABN AMRO businesses fit for long-term growth, harnessing

the experience and expertise of ABN AMRO in the process.

Sir Fred Goodwin, 10 Aug 2007; De Telegraaf and Betten

Financial News

Goodwin, 49, would also have been well aware of the

importance of cash in a protracted bid battle such as that

for ABN, given his experience in the NatWest fight.

He will transform the inefficient parts of ABN Amro now

under his control and there are some obvious targets, given
that it has a whopping 82% cost-income ratio in its

wholesale banking operations, against just 53% at RBS.

Sir Fred Goodwin, needed to persuade investors that the

price paid was right, and that the headache of unravelling

ABN was justified by the cost savings and revenue benefits

they would achieve - which total some 1.8 billion, equivalent
to nearly three times the current pre-tax profits of the

businesses it is acquiring.

Unfortunately, the Credit Crisis hit and both RBS and ABN

Amro were over exposed.