RBS reports record anual loss ($34.4 Billion), the biggest in British corporate history

The Royal Bank of Scotland posted an annual loss of 24.14 billion pounds ($34.4 billion) -- the biggest in British corporate history -- and unveiled a massive restructuring plan on Thursday that will offload many of its international businesses.
The already part-nationalized bank also said it will dump 325 billion pounds of toxic assets into a government insurance program, a step that could result in the state increasing its stake to as high as 95 percent.
RBS Chairman Philip Hampton blamed the massive 2008 loss, which compared with a 7.3 billion pound profit in 2007, on the "unprecedented turbulence" in financial markets and deteriorating conditions around the world.
The bank's revenue fell 15 percent to 25.87 billion pounds.
RBS Chief Executive Stephen Hester, who replaced Fred Goodwin after he resigned in the wake of the bank's financial downfall, refused to make forecasts for the current "difficult" year but said he was confident the restructuring and the government assistance would return RBS to "standalone strength."
The bank said it planned to shift 240 billion pounds, or 20 percent, of its funded assets to a noncore division. Those assets will then be disposed of or run down over the next three to five years.

RBS shares plunge on record loss

RBS shares plunge on record loss

(BBC) Royal Bank of Scotland shares have plunged 67% after the bank said it was heading for a record loss.
The bank said it expects to report a deficit before write-downs of between £7bn and £8bn for 2008.
It will also write down assets, largely related to its takeover of ABN Amro in 2007, of up to £20bn in 2007.
RBS's final deficit is set to beat Vodafone's 2006 loss of £15bn, the current UK record. The bank also said jobs would go because of the downturn. The firm's shares ended Monday trading down 23.1 pence to 11.6p.
As part of the government's package to rescue British banks announced on Monday, the Treasury said it would swap £5bn of preference shares for ordinary shares in the bank, taking its stake in RBS to nearly 70%.


Brown accuses RBS of taking ‘irresponsible risks’
Bank’s shares fall 70% after bail-out

(FT video) Gordon Brown on Monday unveiled a second bank rescue package including powers for the Bank of England to lend up to £50bn directly to businesses, as he accused the Royal Bank of Scotland of taking ”irresponsible risks” as the bank’s shares collapsed.
His comments came as RBS on Monday warned it could report an annual loss of up to £28bn, following the mis-timed acquisition of ABN Amro, the Dutch lender it acquired as part of a €71bn (£63bn) hostile break-up bid in 2007.