Feeds

Small biz still struggling for funding as RBS flounders

Last roll of the dice for UK economy

Reducing security risks from open source software

Royal Bank of Scotland has recorded the largest loss in UK corporate history and is being bailed out again by the Treasury, while small and medium businesses are still struggling to get hold of credit.

RBS lost £40bn before tax in 2008, despite two government bailouts, on a total income of £25.8bn - after excluding parts of the disastrous ABN Amro takeover this falls to a £24bn loss.

RBS group chief executive Stephen Hester admitted the government, already the majority shareholder, could end up owning as much as 95 per cent of the bank "depending on how things work out".

The bank promised to cut £2.5bn from annual costs - part of which is likely to hit the IT department and other back office expenses - RBS already employs 10,000 people in India including over 1,000 in application development.

The UK Treasury is bailing out the bank with more funding, and will underwrite £325bn of dodgy RBS assets. The Treasury will also hand over £13bn in cash and subscribe to another £6bn in options. In return RBS pledges to make £9bn in mortgage loans and £16bn in business loans.

Minister for the death of the UK economy Lord Myners is also giving further details today on the broader Treasury underwriting of toxic assets. The UK taxpayer will underwrite up to 90 per cent of bank losses on certain assets.

Banks can apply for this protection in return for a fee, and promises to increase lending to homeowners and businesses. More details here.

This is seen by many observers as the government's last chance to achieve its objectives the first bank bailout in October also promised to force banks to increase business lending.

Meanwhile, evidence is emerging that the government's previous £1bn Enterprise Finance Guarantee is failing to have much impact on SME's ability to secure funding.

Kevin Dickens, chairman of UK 200 group, told Accountancy Age there was still a lack of information and preparedness about the scheme at all UK banks.

RBS's ex-chief executive 50-year-old Sir Fred Goodwin is also under fire this morning for collecting a £650,000 a year pension. ®

Seven Steps to Software Security

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.