RBS reports biggest annual loss in UK corporate history

Royal Bank of Scotland Group PLC (RBS.L) has reported the biggest annual loss in UK corporate history. RBS have reported losses of £24.1 billion for 2008, the current record annual loss is £14.9bn.RBS have also announced plans of placing £325 billion in assets into a state insurance scheme.

This government backed insurance scheme is designed to help offer yet another lifeline to troubled banks. Royal Bank of Scotland Group PLC (RBS.L) is to be responsible for the first £19.5 billion of losses, which is 6 per cent of the asset value.

After that, the government will then bear 90 per cent of any other losses; RBS will then be seasonable for the reaming 10 per cent. In return for this insurance scheme, RBS

have agreed to meet certain targets. One of those targets is to increase spending by up to £40 billion over the next few years.

More information found from Reuters and The Telegraph

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