RBS Maybe next for tax payer cash
November 4th, 2008 | by abigail |Today as the UK Chancellor Alistair Darling luanches a new company to manage taxpayers shares in the banks they’ve bailed out, RBS (Royal Bank of Scotland) reveals it may be next to apply for government cash.
RBS warned that “significant risks” remained and that it was “not possible to forecast with precision” its results for the final six months. The bank announced that it had written down 206.0 million pounds for credit market losses. RBS benefited from accounting changes that allowed it to reclassify some assets as long-term investments, cutting its write downs by 1.2 billion pounds.
RBS Chairman Tom McKillop said the decision to accept government support had been taken “with considerable regret”.
Royal Bank of Scotland Cheif Executive Sir Fred Goodwin, also known as ‘Fred the Shred’ for his cost cutting, is to be paid more than £300,000 for ‘handing over’ the crippled financial giant to his successor Stephen Hester.