Thursday, February 26, 2009
The costs are colossal, but the costs of not doing it are also colossal,” said Darling
London - The British government Thursday defended its renewed large-scale intervention to secure the survival of the Royal Bank of Scotland (RBS) which has announced record losses of 24.1 billion pounds (34.7 billion dollars). Alistair Darling, the Chancellor of the Exchequer, said by offering a massive asset insurance scheme of 325 billion pounds to RBS, the government "recognized the fact that banks need to clean up their balance sheets." The move will enable RBS to separate "toxic" parts of its business from "healthy" core operations with a view to disposing of troubled sections of its business at a later date.