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Injin

Rbs To Unveil Up To £25 Billion Of Losses

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http://www.reuters.com/article/businessNew...me=businessNews

LONDON (Reuters) - Royal Bank of Scotland (RBS.L) will unveil up to 25 billion pounds ($37.30 billion) of losses for 2008 on Monday due to bad debts and writing off goodwill on its acquisition of ABN AMRO, a British newspaper said on Monday.

RBS will say it incurred about 7 billion pounds of losses in 2008 and that it is taking a goodwill writedown of between 15 billion and 20 billion pounds, The Daily Telegraph reported, calling it the "biggest loss in UK history."

RBS declined to comment on the report. (I'll bet - Injin.)

Britain is set to throw its banks another multi-billion pound lifeline on Monday by allowing them to insure against steep losses and guaranteeing their debt to stop the credit crunch pushing the economy into a deep slump.

The British government will swap up to 5 billion pounds of preference shares in Royal Bank of Scotland for ordinary shares, increasing its stake in the British bank, a person familiar with the matter said on Sunday.

The move aims to remove pressure on RBS -- whose shares fell 13 percent on Friday -- to pay 12 percent annual interest on the preference shares.

The government owns 58 percent of RBS after buying 15 billion pounds of ordinary shares last November. The stake could rise to near 70 percent if all the preference shares are converted. RBS again declined to comment.

RBS, once Britain's second-biggest bank, was left short of capital as a result of hefty write-offs against debt-backed securities. The 2007 acquisition of parts of Dutch rival ABN AMRO put further strain on its capital reserves.

(Reporting by Adrian Croft; Editing by Kim Coghill

Goodwill?

:lol:

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As they say, there's nothing like success - and you guessed it, this is nothing like success.

We're watching Whacked Out Sports right now (they recently renamed it Video Zonkers). The guy who does the commentary is hilarious. I'd love to see them do a Credit Crunch special - Whacked Out Banks.

Edited by Dave Spart

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Well, it couldn't have happened to a more appropriately loathsome bank... but... this leaves open the question of Barclays. Are they still soldiering on with private funding, or is Barclays close to meltdown too?

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Well, it couldn't have happened to a more appropriately loathsome bank... but... this leaves open the question of Barclays. Are they still soldiering on with private funding, or is Barclays close to meltdown too?

At first I thought Barclays resisted offers of government money as it may of impacted their executive compensation schemes but then I read somewhere that they had not 'marked their losses to market value 'yet ( I think that means they havent revalued their assets in line with the market yet).

If that was the case then then they would still be able to state large profits

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Goodwill is an accounting term used to reflect the portion of the book value of a business entity not directly attributable to its assets and liabilities; it normally arises only in case of an acquisition. It reflects the ability of the entity to make a higher profit than would be derived from selling the tangible assets. Goodwill is also known as an intangible asset.

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Don't worry as part of a hard working family I fully support giving my taxes to failed banks, they perform a valuable service to society.

I'm sure that once these writedowns are done there will be no more coming forth, I mean there couldn't possible be the need for a 3rd bailout.

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not surprised, a friend of mine in the mortgage industry said RBS were known as king of self cert and dodgy mortgages, you could get a mortgage out of them with just a name and no proof of income, it was who you knew, not what you had.

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It doesn't help when you loan £2.5 billion to a Russian gangster, then write it off.

He should be made to repay this debt to the taxpayer. Reposess some of his UK property, that would be a start.

No wonder these gangsters are attracted to the UK. Comrade Brown is doing his best to make them welcome.

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8:09AM : 31.50 p Down 3.20 (9.22%)

ROYAL BK SCOTL GR (RBS.L)

*flush*

Last Trade: 24.30 p

Trade Time: 8:51AM

Change: 10.40 (29.97%)

Go baby! Yeah! 240p to 24p in 4 months, 43p to 24p in a few hours. Never seen anything like this from a Blue Chip. Not even in the 87 crash.

Buy at 9p?

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Last Trade: 24.30 p

Trade Time: 8:51AM

Change: 10.40 (29.97%)

Go baby! Yeah! 240p to 24p in 4 months, 43p to 24p in a few hours. Never seen anything like this from a Blue Chip. Not even in the 87 crash.

Buy at 9p?

Buy at 1p for novelty framed share certificate memento.

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Darling just said that in return for Treasury injecting further cash, RBS have agreed to issue 6 Billion of new mortgages. Hmm.

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Darling just said that in return for Treasury injecting further cash, RBS have agreed to issue 6 Billion of new mortgages. Hmm.

I just want to see who in his right mind will take one on? The banks have mortgage offers and are more than happy to do their normal business. How can you force a bank make sub-prime loans now and how can you force unwilling companies/people take on those loans when everyone around has friends/acquaintances that have lost or are about to lose their jobs or take a salary cut if they don't want to be made redundant? How can the velocity of the money be increased? Just print the banknotes and send to people's addresses :blink: ?

Edit: typos

Edited by Meerkat

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It doesn't help when you loan £2.5 billion to a Russian gangster, then write it off.

He should be made to repay this debt to the taxpayer. Reposess some of his UK property, that would be a start.

No wonder these gangsters are attracted to the UK. Comrade Brown is doing his best to make them welcome.

No, you've not been paying attention. He's now a "hard-working homeowner" who must be given British taxpayers' money. Gordon has promised that no one will be re-possessed. It's a green light for everyone to deafault on loans without penalty. It's a green light for banks to lend without bothering to consider whether the borrower can repay.

Go borrow some money and buy some houses.

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Last Trade: 24.30 p

Trade Time: 8:51AM

Change: 10.40 (29.97%)

Go baby! Yeah! 240p to 24p in 4 months, 43p to 24p in a few hours. Never seen anything like this from a Blue Chip. Not even in the 87 crash.

Buy at 9p?

Poor EssexFTB. I'd cash out and enjoy the rest!

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  • 285 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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