Monday, 25 June 2012

Natwest and RBS closing down? Job cuts blamed for failure

UNITED KINGDOM - IT experts say that the CEO of British banks, NatWest and RBS, Stephen Hesther has not been honest about the 'technical failures' which have shut down the banking system for seven days.


Mr Hester has not explained what went wrong but Union officials at Unite said "serious questions" needed to be asked about the management of the bank after Hester cut jobs and outsourced operations as he raced to cut costs and pull out of unprofitable business lines to try to restore the troubled bank to financial health.
 
12 million people have been left in financial difficulties as wages and payments have failed to show up in people's bank accounts. Many people have not been able to pay for rent, mortgages, telephone, gas and electric bills. Millions have gone without food.

1200 branches of the RBS will remain open to customers from 8am to 6pm all week. The NatWest websites wrongly states that the problem had been fixed. Individuals and families who were in the process of buying or selling their properties, businesses and individuals are furious and feel let down that they have been left in limbo. 

Financial experts have advised customers to make notes of the money they were expecting into thir accounts and all the payments they have had to make due to this banking failure. Customers are also advised to open card accounts in a number of different banks to spe=read risk.

According to the British Financial Ombudsman, thousands of complaints have been received by unhappy customers and the banks may have to pay out huge amounts on compensation.

The bank's problems began on Tuesday night when it updated key piece of software called CA-7, which controls the batch processing systems that deal with retail banking transactions – ahead of the regular nightly run. 

NatWest has admitted that it could not say exactly how much money should be in individual accounts as the crisis caused by a failed 'software' update last week spiralled out of control.



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