RBS shares sell-off after unveiling £38bn bad bank

The bank - 81%-owned by the Government - said it had identified £38bn of bad loans to put into an internal bad bank, up to 70% of which it expects it can whittle down over the next two years. However, RBS said in light of its new plan, it expects to make a full year loss in 2013. New chief executive Ross McEwan, who has just taken over from Stephen Hester, said: "In light of the new strategy to deal with our high risk assets we expect a significant increase in impairments in Q4 2013 which is likely to result in the Group reporting a substantial loss for the full year." In reaction ...