RBS collapsing - £28 billion loss in 2008

Indy500 · 19 Jan 2009 at 13:21

Shares in Royal Bank of Scotland plunged more than 40% today after it revealed it was on course to post the biggest loss in UK corporate history.

The value of the country's second largest bank plummeted 42% after it revealed it was on course for a loss of £28bn for 2008. It is facing losing between £7 and £8bn on complex mortgage back securities - the so-called sub-prime market.

In addition, a review of past acquisitions, most notably RBS's share of Dutch bank ABN Amro, would result in a hit of up to £20bn. The final haul will easily exceed the deficit of £15bn reported by mobile phone group Vodafone in 2006.

RBS bosses said they had discussed full nationalisation with the Government because of the poor results but that this was 'something they all wanted to avoid'.

Great, we can look forward to effectively working for RBS. Interesting how they're still recruiting staff through all this too...

Le_Petit_Lapin · 19 Jan 2009 at 13:23

Who is the UK's largest bank out of interest?

Stretch · 19 Jan 2009 at 13:24

Le_Petit_Lapin said:
Who is the UK's largest bank out of interest?

Depends what you mean by largest and what you mean by bank. If you mean what's high street bank is worth the most then it's HSBC iirc.

photoshop · 19 Jan 2009 at 13:31

HSBC is the wealthiest in the world. Think Barclays is the wealthiest UK bank though....

cheets64 · 19 Jan 2009 at 13:34

What a load of crap, after they hounded me to take out loans and a credit card and even life insurance and now that I am unemployed they wont help me out.

Will_3rd · 19 Jan 2009 at 13:36

Hardly collapsing is it? Silly doom mongerers :rolleyes:

Hen_Dawg · 19 Jan 2009 at 13:39

Stupid banks suck. Part of me wants RBS to fail in an act of punishment for their terrible mistakes but that would be bad for all of us so we have to bail them out

scorza · 19 Jan 2009 at 13:40

photoshop said:
HSBC is the wealthiest in the world. Think Barclays is the wealthiest UK bank though....

HSBC is a UK bank.

I don't know why RBS don't just sell Natwest, even in the current climate Natwest has to be worth a few billion. RBS should never have been allowed to buy them in the first place :mad:

Wyrdo · 19 Jan 2009 at 13:41

Do you know what HSBC stands for?

Pilky01 · 19 Jan 2009 at 13:41

Le_Petit_Lapin said:
Who is the UK's largest bank out of interest?

HBOS

Indy500 · 19 Jan 2009 at 13:42

Will_3rd said:
Hardly collapsing is it? Silly doom mongerers

The government buying up 70% of the bank is not significant?

Pilky01 · 19 Jan 2009 at 13:42

Will_3rd said:
Hardly collapsing is it? Silly doom mongerers

It would buy if it wasn't being nationalised.

platypus · 19 Jan 2009 at 13:43

HBOS & Lloyds supermerger will create the largest bank by far.

FTM · 19 Jan 2009 at 13:44

Pilky01 said:
HBOS

might well be now that are merged with lloyds/TSB (think it went through as of monday this week)

the overall group and assets must be pretty big

Glaucus · 19 Jan 2009 at 13:44

scorza said:
HSBC is a UK bank.

what...
They took over a uk bank, was it midlands..

Hatter The Mad · 19 Jan 2009 at 13:45

sr4470 said:
RBS poised for nationalisation

Great, we can look forward to effectively working for RBS. Interesting how they're still recruiting staff through all this too...

Who says RBS is collapsing?

XPE · 19 Jan 2009 at 13:45

Dont these banks make any money off interest any more ?

willhub · 19 Jan 2009 at 13:45

What would happen to my Halifax bank account with my monies in if RBS went 6ft under?

Hatter The Mad · 19 Jan 2009 at 13:45

AcidHell2 said:
what...
They took over a uk bank, was it midlands..

Yes it was. And, so what if they did? It doesn't mean they weren't the biggest bank in the world before doing so.

Cosimo · 19 Jan 2009 at 13:46

Have a read of Robert Preston's latest blog:

http://www.bbc.co.uk/blogs/thereporters/robertpeston/