RBS, biggest British stated-owned bank losses of £3.5bn !
Bailed out: Royal Bank of Scotland is set to
announce losses of £3.5bn on Friday. It is worth £26bn - and the
Government paid £45.5bn
The government was forced to rescue RBS at the height of the financial crisis, injecting 45.5 billion pounds of taxpayer money into the lender, making it the costliest bailout of any bank. Chief Executive Officer Stephen Hester, 51, has shrunk the bank's assets by more than 600 billion pounds to 1.66 billion pounds and cut more than 35,000 jobs since he took over from Fred Goodwin in 2007. Hester said earlier this month that restructuring RBS was equivalent to defusing "the biggest time bomb in history."
The company took a sovereign-debt impairment of 1.1
billion pounds, writing off Greek government debt as part of a European
Union agreement.
RBS's loss would have been narrower if it hadn't had
to set aside 950 million pounds to compensate U.K. customers who were
improperly sold personal-loan insurance.
RBS's results were also affected by rising borrowing
costs as the bank weans itself off low-interest government loans and
takes on costlier funding in wholesale markets. The bank opted in
December to go the European Central Bank for an emergency 5 billion euro
loan as its own costs of borrowing reached an unsustainable level,
according to a person familiar with the matter.
The government was forced to rescue RBS at the height
of the financial crisis, injecting 45.5 billion pounds of taxpayer money
into the lender, making it the costliest bailout of any bank in the
world.
--Editors: Keith Campbell, Francis Harris.
Read more: http://www.dailymail.co.uk/news/article-2105218/RBS-banks-posts-losses-2bn-casino-bankers-enjoy-390m-bonus-pot.html#ixzz1nGtFy7DQ
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