Royal Bank of Scotland have announced their losses for 2008. The figure stands at £24 billion which makes it the biggest loss in UK corporate history.
The bank has been steeped in disaster since the Lehman Brothers failure brought near catastrophe to the banking sector as a whole. RBS has racked up debts through bad charges and the very unsuccessful acquisition of Dutch bank ABN Amro. Being blamed at the forefront are former managers at the bank, who are being accused of reckless and irresponsible behaviour.
Union leaders expressed that they feel it is now of paramount importance that the government steps in to fully take over the bank. At the moment, 70 per cent of the bank is owned by the taxpayer but full nationalisation might mean that more bank workers are protected.
Lending will increase, though who would want a secured loan from a bank embroiled in such difficulties? That is the question being asked by many, and the shareholders and bondholders will also be wondering how safe they are in the coming days.
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