RBS braces for £1bn sub-prime hit

The Royal Bank of Scotland is expected to take a £1bn write-down when it
releases final results on Thursday and reveals its exposure to US sub-prime
mortgages.

The Times reports that in December RBS wrote down £950m from
sub-prime assets and a further £250m on its leveraged finance business ABN Amro,
the bank it acquired last year, took its own US sub-prime hit of £300m.

Since those write downs credit markets have worsened and so far Alliance
& Leicester, Barclays and Lloyds have all taken hits from sub-prime
exposures.

Further reading:

RBS announces £950m writedown

UK banks face further writedowns

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