RBS expects $28 billion loss and is 70% nationalised
Edinburgh & London - The Royal Bank of Scotland (RBS) has announced it expects to sustain the UK's largest ever corporate loss, by losing £28 billion ($41.3 billion) for 2008. In response, the UK government has recapitalised the bank in exchange for 70% nationalisation, up from 58% held after a previous recapitalisation in October 2008. The bank's market value has plunged from £75 billion two years ago to under £5 billion today. UK prime minister Gordon Brown said the bank's misfortunes were the result of a combination of risk-taking on US-based mortgage securities and the expensive 2007 take-over of Dutch bank ABN Amro.
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