Nationalization Looms for Royal Bank of Scotland

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

By Rob Quinn, Newser Staff

Posted Jan 20, 2009 4:51 AM CST

(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.

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A branch of the Royal Bank of Scotland in London. (AP Photo/Matt Dunham)

A logo marks a branch of the Royal Bank of Scotland in London. The bank's losses for 2008 are expected to be the biggest in British history. (AP Photo/Matt Dunham)

People walk by a branch of Royal Bank of Scotland in London. The British government is believed to be days away from nationalizing the troubled bank. (AP Photo/Sang Tan)

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The government increasingly resembles somebody who is trying to give the kiss of life to a corpse. - Vince Cable, Treasury spokesman for the opposition Liberal Democrat Party

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Nationalization Looms for Royal Bank of Scotland