Dutch Court Blocks Bank Merger

Lack of faith in government's bank bailout plans sparks investor stampede

(NEWSER) - One of Britain's biggest banks is on the verge of nationalization, reports the Daily Telegraph. The Royal Bank of Scotland's shares plummeted more than 65% yesterday after it revealed massive losses of $56 billion for 2008—the highest in British history. The government has upped its stake in the bank to 70% and experts believe it will be fully nationalized within days, rendering the bank's shares effectively worthless. More»

Failed rights issue leaves banking giant in taxpayer hands

(NEWSER) - The Royal Bank of Scotland, one of the giants of British banking, confirmed today that taxpayers now own a majority share following a $30 billion government bailout, reports the Guardian. The country's No. 2 bank failed to raise sufficient cash via a $22.5 billion rights issue, with only 1 in 400 shares finding a buyer. Treasury has bought 57.9% of the business and also acquired $7.5 billion in preference shares, which must be paid off before ordinary shareholders can receive dividends. More»

Cost of drastic rescue package could top $800B

(NEWSER) - The British government will become part owner of the nation's biggest banks with a mammoth $88-billion rescue package for the troubled institutions, the Wall Street Journal reports. Under the plan, swiftly assembled after UK bank stocks plummeted in trading yesterday, the government will purchase non-voting shares in eight of the largest banks as a way to provide extra capital to the institutions. More»

(NEWSER) - Barclays will pick up the US capital-markets business of Lehman Bros. in a $2-billion deal worked out today that will go before a bankruptcy judge at 5pm and Lehman creditors shortly after that, the Wall Street Journal reports. Barclays backed away from buying all of Lehman over the weekend, but a deal was salvaged by Lehman's bankruptcy, which made it easier to leave "bad assets" at the holding company to be liquidated by the court. More»

(NEWSER) - Barclay's dropping out of a Lehman deal means that the Feds lost a game of chicken with the big banks holding Lehman mortgages, and now there will be a disorderly liquidation of Lehman assets, instead of the orderly liquidation that would have been possible with a real buyer, James Cramer writes on TheStreet.com. The question is how big a hit those owning Lehman mortgages will take. More»