Skip to: Content
Skip to: Site Navigation
Skip to: Search

December 2, 2008 7:00:42 AM CST

Learn about Newser Points »

« Back to the grid | Next story »

Latest Credit Victim RBS Seeks $24B

Posted Apr 18, 08 9:34 AM CDT in World,  Business 

(Newser) – Royal Bank of Scotland is preparing to issue new stock after conceding it was facing serious cash flow problems. After consulting with the Treasury and the nation's financial oversight authority, Britain's second-largest bank is planning a rights issue for around $24 billion to rebuild its capital reserves. The move may trigger a wave of other appeals for help, writes the Telegraph.

Shares in RBS rose 4% on the announcement but have started to yo-yo. In any event, the rights issue might not be enough to save the job of CEO Fred Goodwin, one of Britain's most respected financiers who has been forced to go begging for cash. Many investors believe that the troubles at RBS stem from having overpayed for ABN Amro, the Dutch bank that it bought after a dramatic battle with Barclays.

Sources Daily Telegraph (UK), Times (UK)

0 comments | Print E-mail | Digg Seed this on Newsvine Add this link to Del.icio.us StumbleUpon

Related Newser Stories

  • Britain Now Owns Majority Share of RBS

    Nov 28, 08 6:44 AM CST
    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 »

  • UK Props Up Major Banks; Fed Offers Cash

    Oct 13, 08 7:08 AM CDT
    UK Props Up Major Banks; Fed Offers Cash Governments across the globe are acting with “an enormous amount of congruence” and speed as they pour billions of dollars into rescue plans hoping to keep a sinking banking system afloat, reports the Wall Street Journal. The British government today provided $60 billion to prop up 3 banks, and the US Fed announced a massive infusion of cash into European markets. Global markets haven risen sharply on the news.
    More »

  • UK Buys Up Bank Shares in Radical Bailout

    Oct 8, 08 4:29 AM CDT
    UK Buys Up Bank Shares in Radical Bailout 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 »

  • UK Banks 'Milk Borrowers' to Pay for Credit Crunch

    Aug 23, 08 7:19 PM CDT
    UK Banks 'Milk Borrowers' to Pay for Credit Crunch Britain's big banks are being accused of hoisting nearly £3 billion in interest payments on customers to make up for bad bank investments, the Daily Mail reports. Seeking to recoup huge losses from assets linked to subprime US mortgages, the banks have hiked mortgage rates and fees despite interest rate cuts that make it easier for banks to borrow.
    More »

  • Mortgage Crisis Spreads Across the Atlantic

    Apr 9, 08 10:58 AM CDT
    Mortgage Crisis Spreads Across the Atlantic UK home prices tumbled 2.5% in February—the largest fall since the 1990s—as the International Monetary Fund warned that Britain could face a housing crisis similar to the US. British PM Gordon Brown insisted yesterday the decline was containable, but the Bank of England is now under serious pressure to cut interest rates at its meeting tomorrow, the Times of London reports. More »

The Royal Bank of Scotland is issuing new stock in order to shore up its balance sheet.   (Getty Images)
The Royal Bank of Scotland, Britain's second-largest bank, is hoping to raise at least $10 billion in cash in a new stock release.   (Getty Images)
« Prev« Prev | Next »Next » Slideshow
Our editors also recommend:

Threads (
1
 of 3)

Tags

credit crisis • United Kingdom • Royal Bank of Scotland • Financial Services Authority • ABN Amro


Loading...

Premium Articles from HighBeam

Find more articles like this

Today's Most Popular

Loading...

Other Business Stories

What is Newser?

2008 Codie Finalist

Face it: there's too much news. At Newser a team of editors and writers culls the most important stories from hundreds of U.S. and international sources and reduces them to a headline, picture, and two paragraphs. It's the Newser guarantee: we can take any report or column or video and pack what you need to know into 120 words or less. Newser's short-form aggregation, visual format, and unique information tools help you get more of the kind of news you want, in a quicker and more entertaining way. And we do it 24/7—you can come back morning, noon, night (and in between) for something new that matters. Read less, know more.

Learn more »