Sir Philip Hampton, the chairman of Sainsbury's, has agreed to become the new chairman of Royal Bank of Scotland, replacing Sir Tom McKillop after the bank's crisis led to senior management resignations. The appointment comes as the government scrambles to stabilise the banking sector amid the credit crunch.
The stock market reacted sharply, with RBS shares hitting an all-time low and Barclays also falling 24% in a day. The decision to allow short selling again has been criticised as 'visionary by the authorities' by some commentators, who fear further nationalisation of RBS may be inevitable.
One reader questioned where the hundreds of billions of pounds lost in the crisis have gone, suggesting wealth cannot simply evaporate. Another speculated that the money never really existed, comparing it to the Madoff scandal but more complex.
Others argued the government is complicit in undermining banks, citing leaks about Northern Rock and delays on short selling restrictions. The Chinese and Russian oligarchs were identified as beneficiaries of the wealth transfer, along with OPEC nations.
