Monday, 19 January 2009

Royal Bank of Scotland

The Royal Bank of Scotland (not to be confused with the Bank of Scotland) which owns Ulster Bank and NatWest has today reported financial results which are worse than anything ever reported on the London stock exchange before.

They've lost £28bn on the year. The first £20bn of loss was somewhat outside their control - it relates to the takeover in 2007 of the Dutch bank ABN Amro.

However the remaining £8bn is more concerning - it's the simple trading loss they made in 2008 for which there is little excuse; the credit crunch started in September 2007 after all - there should have been no surprises in 2008. Although ABN Amro lending £2.5bn to a Russian tycoon who isn't planning on giving it back can't have helped.

RBS results
Russian tycoon

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