Talk by Les Matheson, MD, Retail Products (Financial Crisis)

1. Bachelors of Commerce (Honors)
2. Consumer marketing
3. P&G 7 years
4. Kraft Foods, GM in Argentina
5. Citi Taiwain, marketing head (Asia, Pacific)
6. Singapore, Japan (Tokyo)
7. 10 basis points = (0.1%)
8. Japan -> Australia -> Phillipeans
9. Q1 (What did Citi do that its Japanese Competitors didn't)?
10. Summary of Financial Crisis:
1. Q2:  Did 9-11 accelerate the problems which led to the financial crisis?
2. ICB is recommending leverage ratio of 10 or less (at crisis point closer to 33)
3. Regulatory Failure
11. Evolution of Crisis:
1. Low interest rates
2. sub-prime mortgages in the US
3. dis-incentive to pay back mortgages in the US
12. Q3- Can economies produce no physical goods and still remain afloat?
13. Problems in the Strategy of UBS
1. acquisition led
2. underinvestment in local businesses, over extension abroad
3. ignoring risk
4. overleverage
5. Q4:  Do you think the reason for your success in Tokyo (taking on risk) could have been the cause of difficulty during the downturn (financial crisis).
6. Q5:  Do you think that its ironic that the people who learned the lesson of this crisis can no l
7. Q6:  Why does creating a "bad bank" work?
8. Q7:  What concrete measures is RBS taking to ensure that risk control is built into the system?
9. Customer service
10. Q8:  2013 "goal line" what is the goal to achieve by then?
11. Determine core and non-core businesses
12. Example of an asset that you sold?  Went into Bad bank?
13. How do you differentiate yourself when the Govt is mandating certain changes (leverage ratios etc...)
14. What is organic growth?
15. Is anything preventing you from creating a mix of assets in the current market?
1. lack of entry opportunities
2. strategic abhorrence
16. What would you have done in retrospect?
17. HR practices at RBS -  How are personell assessments conducted?
18. Customer service performance:
1. Incentive program -  focused on sales vs other measures
2. Airlines First Class customers applied to banking
3. customer charter- list of 20 things that RBS will do
4. checks and balances at RBS
5. PPI- insurance