Royal Bank of Scotland (RBS), the bank that is now majority owned by the UK taxpayer, today reported a loss of £857 million for the first three months of the year after a £4.9 billion write down on failed investments and toxic loans all but wiped out its profits, according to The Times .
Between January and March, RBS made a £4 billion operating profit, which does not include any costs, impairments or tax charges, mainly due to a strong performance from its global banking and markets division, which covers its investment banking business.
However, operating profits were wiped out by a £4.9 billion impairment charge, with the recession, lower interest rates and bad debts had taking their toll "across all businesses and sectors." Full story...
MAJOR AMERICAN BANKS RACED to raise extra capital last night after the US government's financial stress tests revealed 10 of the 19 largest institutions require a collective $74.6bn (£49.6bn) in extra capital to weather future economic storms, reports The Telegraph.
Morgan Stanley and Wells Fargo announced immediate plans to raise extra funding after shortfalls were detected in their balance sheets, while others, including Goldman Sachs, pushed to return existing government funds.
The tests, undertaken by the US Treasury and federal regulators, determined Bank of America to have the biggest capital shortfall of all 19 tested, estimating it would need $33.9bn in extra Tier One capital to meet the potential losses under a worst case loss scenario of $136.6bn over the next two years. Full story...
THE JAILED WALL STREET fraudster Bernard Madoff has a volatile temper, a lewd sense of humour and a penchant for midday massages according to his long-serving secretary who believes her former boss carefully planned the circumstances of his arrest, according to The Guardian.
A 25-year veteran of Madoff's fund management firm, Eleanor Squillari says she suspected no wrongdoing until the moment her boss with charged by the FBI with orchestrating the biggest scam in financial history through a $65bn (£43bn) Ponzi scheme.
In an interview with NBC television today, Squillari, who used to sit just yards from Madoff's office, said she believed the 71-year-old was withholding information from the authorities in order to protect accomplices: "I believe that yes, he is protecting people."
When asked who else she believed was involved, she replied, "I really don't think I should say, but I would like to say that I hope that anybody who is knowingly involved would be brought to justice." Full story...IFAonline
Irish border, resignations, market volatility and more
Revealed – successes across all 11 categories
Fidelity International multi-asset CIO James Bateman talks to Julian Marr about recent market volatility, portfolio positioning and his thoughts on the coming year
Follows Phil Young
‘Positive so far’