RBS unveils $34 billion loss, record for a UK firm

Reuters

Posted at Feb 26 2009 05:36 PM | Updated as of Feb 27 2009 01:36 AM

LONDON - Royal Bank of Scotland on Thursday reported a loss of 24.1 billion pounds ($34.3 billion) for 2008, the biggest in British corporate history, and said it planned to place 325 billion pounds in assets in a state insurance scheme.

Under the government backed insurance scheme designed to extend another lifeline to banks, RBS will be responsible for the first 19.5 billion pounds of losses -- or 6 percent of the asset value. The government will bear 90 percent of any losses after that, and RBS incurs the remaining 10 percent.

The UK government will also provide another 13 billion pounds of capital through the issuance of B shares.