BusinessCompany News£5bn RBS writedown expected

£5bn RBS writedown expected

Low estimates of RBS downgrading of its assets this week put at £5bn as banking giant continues to feel credit crunch effects

The Royal Bank of Scotland is bracing itself for a further writedown of at
least £5bn on the value of its assets.

RBS is expected to make an announcement to the City in a trading statement
this week, but the writedown could be as large as £7bn,
The
Times
reported.

This morning, the bank said that it was
considering
selling shares
at attractive prices to existing shareholders in a rights
issue, expected to raise £10bn.

The bank has already announced writedowns of about £1.7bn on the value of its
mortgage-backed debt packages, loans to private equity groups and other
securities.

Further reading:

RBS
braces for £1bn sub-prime hit

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