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RBS shares down as computer glitch fallout drags on

Published: 22:59 26 Jun 2012 AEST

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Shares in Royal Bank of Scotland (LON:RBS) fell over 4 per cent today as the huge fallout from its computer glitch went into its second week.

The chaos has led to customers having no access to accounts and reportedly led to a backlog of 100 million transactions.

UK tax payer owned RBS is the parent company of Natwest and the two have around 15 million accounts between them.

And to add insult to injury for already beleaguered customers, there is reportedly no guarantee that the mess will be sorted out by the end of this week.

Indeed, it could well drag on beyond that, some say.

It emerged today that Bank of England governor Mervyn King has called for an investigation by the Financial Services Authority (FSA) into the debacle.

RBS has said that a "few specific sets of transactions" continued to be trapped in its computer system.

Meanwhile, The Financial Ombudsman Service has urged account holders to be vigilant - advising them to keep detailed records of transactions and conversations.

Yesterday, it was reported that NatWest had extended its trading hours again to cope with the chaos.

More than 1,200 branches were opened on Sunday (June 24) to clear the backlog of transactions that had been held up by the failed software update and to help customers left at a loss after payments didn't arrive and vital deadlines on payments were missed.

RBS Chief executive Stephen Hester has issued a public apology for the chaos and conceded the bank had let down its customers.

It has promised that any overdraft fees or charges on current accounts incurred by customers would be automatically be waived and has said it would work directly with credit agencies to ensure no-one's credit score was affected.

There were also calls today that Hester misses his annual bonus due to the fiasco.

The bank boss received over £1.2million last year after he agreed to waive a £1.6million bonus. 

RBS shares stood down 4.22 per cent this afternoon, at 226.8 pence.

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