RBS could make £12bn rights issue - papers 18 Apr

The possible rights issue, which could raise between £5bn and £12bn, would put the bank's chief executive, Sir Fred Goodwin, under intense pressure after last year's audacious takeover of parts of the Dutch bank ABN Amro put strain on RBS's all-important capital ratios. Until now RBS has insisted that it would be able to avoid a cash call by generating income through its everyday operations. But the slowdown in the markets is reducing expectations for income growth at all the major banks this year, and may force RBS to concede that it will need to raise capital through other means. THE...