This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/8251249.stm

The article has changed 3 times. There is an RSS feed of changes available.

Version 0 Version 1
Bank boss wary of quick recovery Bank boss wary of quick recovery
(about 5 hours later)
A slow, smooth recovery from recession would be far better than a rapid bounce, Stephen Hester, chief executive of Royal Bank of Scotland, has said.A slow, smooth recovery from recession would be far better than a rapid bounce, Stephen Hester, chief executive of Royal Bank of Scotland, has said.
He told BBC business editor Robert Peston that "a rather gradual emergence from recession" where the economy could "rebalance" was the best way forward.He told BBC business editor Robert Peston that "a rather gradual emergence from recession" where the economy could "rebalance" was the best way forward.
He warned a "spend-not-save" culture could mean further economic downturn.He warned a "spend-not-save" culture could mean further economic downturn.
Mr Hester was made RBS boss in November 2008, at the same time as the bank had to be rescued by the government.Mr Hester was made RBS boss in November 2008, at the same time as the bank had to be rescued by the government.
A 70% stake is now held in RBS by UK taxpayers.A 70% stake is now held in RBS by UK taxpayers.
'Lost decade''Lost decade'
Mr Hester told our correspondent he wanted to see a situation "where people can save more, borrow less, the balance of payments deficit closes, the government gets its own deficit under control".Mr Hester told our correspondent he wanted to see a situation "where people can save more, borrow less, the balance of payments deficit closes, the government gets its own deficit under control".
He said the priority for the UK was to reduce the indebtedness of public sector, households and businesses.He said the priority for the UK was to reduce the indebtedness of public sector, households and businesses.
But if we returned to our ways of the boom years, where households and businesses spent but did not save, he warned that the UK could face a "Japanese-style lost decade".But if we returned to our ways of the boom years, where households and businesses spent but did not save, he warned that the UK could face a "Japanese-style lost decade".
That would be a decade "where the economy is highly unstable, or, worst case, we actually have another down period - a so-called W-recession".That would be a decade "where the economy is highly unstable, or, worst case, we actually have another down period - a so-called W-recession".
So Mr Hester described a fast recovery, were it to happen, as "dangerous".So Mr Hester described a fast recovery, were it to happen, as "dangerous".
Mr Hester also told our correspondent that his parents, who are academics, believe that "bankers get paid too much".Mr Hester also told our correspondent that his parents, who are academics, believe that "bankers get paid too much".
The full interview with Stephen Hester can be seen on Leading Questions with Robert Peston, at 2030 and 2330 BST on Saturday, 12 September, and 2230 on Sunday, 13 September, on the BBC News Channel.The full interview with Stephen Hester can be seen on Leading Questions with Robert Peston, at 2030 and 2330 BST on Saturday, 12 September, and 2230 on Sunday, 13 September, on the BBC News Channel.