John Ward – Analysis: Why RBS Is A Bes Mess In The Making – 4 August 2014

A whopping pension hole in the future, and whopping liabilities that aren’t in the past

Well, as you’ll recall, Banco Espirito Santo (BES) was in fine fettle really last month, but by Friday afternoon last it needed a €4.9bn bailout. By this morning, the sum had reached €6.6b, and good bank v bad bank had been applied. Before long, no doubt, the usual measure applied to these matters will double that number, and wipe out the equity. Then we can start wondering how the bailin will operate.