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Friday, April 18, 2008

RBS Rights Issue

The Royal Bank of Scotland (RBS) is reportedly preparing a rights issue to replenish its capital reserves.

The rights issue is needed to repair the balance sheet that has been badly dented by the cost (£47BN shared between two others) of buying ABN, and the £1.6BN in write downs from the credit crunch.

Reports indicate that RBS are looking to raise £12BN.

Previously RBS has indicated, via a briefing from chairman Sir Tom McKillop to major shareholders, that there would be no rights issue.

Things change quickly these days!

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