RBS's John Hourican

RBS’s Hourican discusses Moody's downgrade and Asian strategy

In an exclusive interview, John Hourican, CEO of RBS’s markets and international banking division, gives his reaction to Friday’s downgrade by Moody’s, discusses the bank’s strategy in Asia and explains what needs to happen to make banking fun again.

How will the Moody’s downgrade affect your strategy given your strategic reliance on being a strong counterparty
We are a strong counterparty. The group disagrees with Moody’s ratings change, which we feel is backward-looking and does not give adequate credit for the substantial improvements we have made to our balance sheet, funding and risk profile. Nonetheless, the group believes the impacts of this downgrade are manageable, bearing in mind its 153 billion $240 million liquidity portfolio. The amount of collateral that may have to be posted following this one-notch downgrade is estimated to be 9 billion as of May 31, 2012. The group continues to maintain a solid liquidity and funding...

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