Snappy newsletters. Simple Facebook sharing. Spirited comments. Sweet features are waiting… GET THEM NOW!

Britain Now Owns Majority Share of RBS

Failed rights issue leaves banking giant in taxpayer hands

By Jason Farago,  Newser Staff

Posted Nov 28, 2008 6:44 AM CST
Email

(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.

A branch of the Royal Bank of Scotland is seen in London, in this Friday, Nov. 14, 2008 file photo. The British government now owns a 57.9% stake in the country's second-largest bank.
A branch of the Royal Bank of Scotland is seen in London, in this Friday, Nov. 14, 2008 file photo. The British government now owns a 57.9% stake in the country's second-largest bank.   (AP Photo/Kirsty Wigglesworth, FILE)
A customer enters a Royal Bank of Scotland branch in London, Tuesday Nov. 4, 2008. The British government now owns a 57.9% stake in the country's second-largest bank.
A customer enters a Royal Bank of Scotland branch in London, Tuesday Nov. 4, 2008. The British government now owns a 57.9% stake in the country's second-largest bank.   (AP Photo/Tom Hevezi)
A customer at a Royal Bank of Scotland branch in London, Tuesday Nov. 4, 2008. The British government now owns a 57.9% stake in the country's second-largest bank.
A customer at a Royal Bank of Scotland branch in London, Tuesday Nov. 4, 2008. The British government now owns a 57.9% stake in the country's second-largest bank.   (AP Photo/Tom Hevezi)
« Prev« Prev | Next »Next » Slideshow
To report an error on this story, notify our editors.
A snapshot of the day's best news stories.
 
COMMENTS
Be the first to comment on this story.

Investors shun overpriced RBS shares
Financial Times (UK)

Money • World

 
United Kingdom • Royal Bank of Scotland • bank • Britain • stock offering • bailout

More Newser Stories

Brits Strip Bad Banker of Knighthood

Under Pressure, Bank CEO Waives $1.5M Bonus

Moody's Downgrades Top UK Banks

Treasury Headed for Underwhelming AIG Sale

UK Asks US to Ban Al-Qaeda YouTube Clips
NEWS FROM OUR PARTNERS
Other Sites We Like:   24/7 Wall St.   |   Betty Confidential   |   BuzzFeed   |   Cracked   |   Fark   |   Timelines   |   The Frisky   |   Geek Sugar   |   NewsOne