Friday, Apr 18, 2008
Analysts stressed that this was not something that should worry people with accounts at any RBS banks.
BBC: RBS 'prepares fundraising plan'
But RBS is unlikely to be the only bank considering going to the market for extra capital.
Bradford and Bingley denied widespread reports at the weekend that it was planning to raise money in the same way.
The global credit crunch has meant banks worldwide are keen to shore up their capital positions - and it is thought others may follow RBS's move.
Posted by malct @ 08:25 AM (303 views) Add Comment
6 Comments
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1. Mrmickey said...
Yes don't worry take your happy pills as the BBC said this morning "it's just like them raising a bit of petty cash".
2. Gothin said...
What's really interesting is why companies that claim to be making billions in profit are having to go to share holders cup in hand!
3. mark wadsworth said...
£12 billion looks about right.
The magic fag packet says total household debt £1,500 of which about 5% can be written off = £75 billion. RBS has a 20% market share (?) so it's looking at a write down of £15 billion-odd.
RBS has a market capitalisation of £36 billion. Because of the gearing and Basel ratios and so on, we'd expect bank's cash requirements to be in the order of half their market cap, give or take wide margin or error, so one-third seems about right (£12 billion divided by £36 billion).
4. inbreda said...
"of which about 5% can be written off "
5% now, 10% tomorrow.
5. Fed Up said...
RBS can possibly the attract the capital. I find it difficult to belive that B&B can though.
6. denzil said...
I think banks and their investors have gone made and all notion of commonsense has gone out the window.
RBS need money but the fact they need money would never make me invest in them whilst the current board of directors are at the helm. Change the board and they may be worth looking at.
Secondly, this same board of directors are the same "sharp" decision makers who managed to buy ABN Amro at the top of the market.
I would seriously look at the board at RBS as they appear to have got their GCSE business studies from the same 6th form tech as Adam Applegarth.