Apparently, Americans like being lied to. For two years we have been told by bank CEO’s that they “don’t need capital”. For two years our government has told us that recovery was around the corner. For two years our money has been funneled into the banks’ bondholder’s pockets. It continues to this day. But a funny thing is happening in Europe where the banks aren’t mired in AIG money laundering scams or odd accounting shenanigans: they’re telling the truth. In a statement very similar to Lloyds yesterday, RBS had this to say today:
“We expect credit conditions to continue to deteriorate over the next few quarters consistent with these trends, and that there will be a slow-down in financial market activity compared with the very buoyant conditions seen in Q1. Some commentators are beginning to talk about economic recovery; we remain cautious and continue to plan and manage our businesses in the full expectation that both 2009 and 2010 will be very tough years for RBS.“
You can’t handle the truth. Unless you’re European, that is….