Royal Bank Of Scotland Set To Report Largest Loss In Banking History
The Royal Bank of Scotland (RBS) is set to announce the largest ever loss in UK banking history this week with some analysts forecasting a lose in the region of £1 billion, but some suggesting it could be as high as £1.7 billion for the first 6 months of 2008. The loss is going to severely dent the reputation which the bank as built up over the decades and lead to major pressure on the company's directors.
The bank is being forced to take a hit of around £6 billion in relation to problems caused by the credit crunch. This hit will wipe out the underlying profits of the group and lead to concerns about the banks funding position, even after the £12 billion rights issue. The last few months have been a complete disaster for the group with critics hitting the board from all sides.
The only real ray of sunshine was thought to have been the sale of the insurance division for around £7 billion but bidders have left in their droves and the prices has been falling. The group is said to be in advanced talks with US outfit Allstate but they are not prepared to pay anywhere near the £7 billion asking price. Watch this space....
Share this..
Related stories
Greek Parliament Passes Crucial Bailout Reforms
23/07/2015 The Greek parliament voted to approve a second set of crucial reforms last night in order to take another step towards securing an €86bn bailout from their European creditors. The debate over whether to accept reforms has divided opinion in Greece, with last nights parliamentary debate lasting until 04:00am (local time). Thousands of protestors demonstrated outside parliament...
Read MoreBuyers move into pole position in housing market
At the start of 2010 there were high hopes for the UK property market with signs that the market was stabilising and looking to move ahead in the short to medium term. However, problems in the European economy, liquidity issues and concerns about the UK economy, in particular ahead of the budget, have had a massive impact upon sentiment. It now looks as though buyers are in the ascendancy although...
Read MoreHave you seen a reduction in your credit card limit?
As the credit card industry comes under more and more pressure to reduce interest rates it would appear that credit card companies are cutting back on their liabilities and their future exposure. A recent survey suggests that 2.7 million customers have seen their credit card limits reduced by an average £2,000 over the last six months. This is a substantial 50% increase from the same period last...
Read MoreDoes transferring your overdraft to your credit card make sense?
Figures from the credit card industry have highlighted a growing trend with many credit card holders now looking to transfer their overdraft debits on to their credit cards. While this may seem a very expensive route in the short to medium term, it would appear that many are making use of a 0% balance transfer offers, which are starting to reappear in the market again.
While for tho...
Persimmon sees 'balanced' property market
Recent interest rate rises have balanced out the UK's housing market, construction firm Persimmon says.The Bank of England has raised the base rate three times so far this year to its current rate of 5.5 per cent in a bid to curb upward inflationary pressures across the whole economy.With average house prices continuing to rise, albeit at a slightly slower rate recently, Persimmon says the hikes h...
Read More