RBS set for £28bn loss as Govt takes further stake

RBS shares plunged more than 15% this morning as it revealed losses for the full year are likely to be between £7bn and £8bn, with an additional £15bn to £20bn write-down relating to its ABN AMRO acquisition. Its dire financial situation has forced the Government to take a second stake in the bank, with HM Treasury agreeing to replace the £5bn of preference shares it holds with new ordinary shares. At 31.75p, an 8.5% discount to RBS' closing price on 16 January 2009, the shares will be offered pro rata to existing shareholders, but is expected to be fully taken up by the Treasury. Its s...