Royal Bank of Scotland expects to report biggest full-year loss in British corporate history

[girl gone mad]

RBS expects full-year loss up to 28 billion pounds

LONDON (AP) -- Crisis-stricken Royal Bank of Scotland took fresh help from the government on Monday and announced that its losses for last year could reach 28 billion pounds ($41.3 billion) -- the biggest ever for a British corporation.

The government raised its stake in RBS from 58 percent to 70 percent in a deal which will save the company 600 million pounds a year in interest charges, but the agreement ignited fears in the market that the bank could soon be fully nationalized. RBS battered shares lost two-thirds of their value in Monday's trading.

"Isn't this nationalization in all but name?" said Vincent Cable, a senior lawmaker from the Liberal Democrat party.

Prime Minister Gordon Brown, who separately announced a new round of bailouts for Britain's troubled banks, scolded RBS for what he called irresponsible risk-taking on mortgage-related securities in the United States and the expensive takeover of Dutch bank ABN Amro.

The bank said it expected to mark down the value of past acquisitions including the ABN Amro deal by 15 billion to 20 billion pounds, plus posting other losses up to 8 billion pounds after a dismal fourth quarter.

The largest full-year loss previously reported by a British corporation was 15 billion pounds, by Vodafone in 2006.

http://finance.yahoo.com/news/RBS-expects-fullyear-loss-up-apf-14097594.html

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1. This was referenced in this video (link).

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=385x262760