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| Version 1 | Version 2 |
|---|---|
| RBS reports record corporate loss | RBS reports record corporate loss |
| (10 minutes later) | |
| Royal Bank of Scotland (RBS) has announced the largest annual loss in UK corporate history. | Royal Bank of Scotland (RBS) has announced the largest annual loss in UK corporate history. |
| RBS, which had to be bailed out by the government last year, said that its 2008 loss totalled £24.1bn. | RBS, which had to be bailed out by the government last year, said that its 2008 loss totalled £24.1bn. |
| It also said it would put £325bn of toxic assets into a scheme that offers insurance for any future losses. | It also said it would put £325bn of toxic assets into a scheme that offers insurance for any future losses. |
| The Asset Protection Scheme, backed by taxpayers, aims to strengthen bank balance sheets and encourage banks to lend more to firms and individuals. | |
| Chairman Philip Hampton blamed the massive loss on the "unprecedented turbulence" in financial markets and deteriorating conditions around the world. | Chairman Philip Hampton blamed the massive loss on the "unprecedented turbulence" in financial markets and deteriorating conditions around the world. |
| "We owe our continued independence to the UK government and taxpayers and are very thankful for their support," he said. | "We owe our continued independence to the UK government and taxpayers and are very thankful for their support," he said. |
| He warned that 2009 would be another tough year. | He warned that 2009 would be another tough year. |
| 'Increased certainty' | |
| RBS will pay £6.5bn to the Treasury to take part in the Asset Protection Scheme, which will be funded by issuing new shares. | |
| It said it would liable for the first £19.5bn in losses on the assets insured as part of the scheme. | |
| "Participation in this scheme would assist us in reducing risk for shareholders whilst providing greater support for UK customers via increased lending," said RBS chief executive Stephen Hester. | |
| "It would provide increased certainty to the market by limiting potential losses on a significant proportion of our balance sheet." | |
| Lloyds Banking Group is also expected to take part in the scheme, which could see taxpayers guaranteeing up to £600bn worth of toxic debt. |