and the stock is up 24% on this morning's open. Nothing like a government guarantee to keep the illusion going:
RBS posts record £40bn pre-tax loss
The Royal Bank of Scotland has reported a £40bn loss before tax - the biggest in UK corporate history. Net losses, which come after tax and interest and other charges, came in at £24.1bn.
The loss compares with a £9.8bn pre-tax profit in 2007 and comes after £32.6bn writedown of assets, mostly related to its ill-fated decision to buy ABN Amro for €71bn (£63bn).
The previous record annual loss for a UK company was £14.9bn.
The bank, now 70pc owned by the state after a £20bn bail-out, unveiled a sweeping restructuring plan.
This included placing £325bn in assets in a state insurance scheme. Under the scheme designed to extent another lifeline to banks, RBS will be responsible for the first £19.5bn of losses - or 6pc of the asset value.
The taxpayer will bear 90pc of any losses after that, and RBS incur the remaining 10pc.
RBS will also shift £240bn of non-core assets to a standalone division. These will be sold or run down over five years.
As many as 20,000 jobs could be lost after RBS said it planned to cut costs by £2.5bn.
News of the bank's huge loss follow the BBC's revelation about the scale of former chief executive Sir Fred Goodwin's pension fund, said to be worth £16m. His decision to buy ABN Amro has been widely blamed for making RBS more vulnerable.
The BBC has learned Sir Fred has begun drawing his £650,000-a-year pension.
Treasury Minister Stephen Timms said the government was looking at ways of "clawing back" his payments.
RBS's expected 2008 annual loss compares with its £9.9bn profit in 2007 and £9.2bn profit in 2006.
The Royal Bank of Scotland has reported a £40bn loss before tax - the biggest in UK corporate history. Net losses, which come after tax and interest and other charges, came in at £24.1bn.
The loss compares with a £9.8bn pre-tax profit in 2007 and comes after £32.6bn writedown of assets, mostly related to its ill-fated decision to buy ABN Amro for €71bn (£63bn).
The previous record annual loss for a UK company was £14.9bn.
The bank, now 70pc owned by the state after a £20bn bail-out, unveiled a sweeping restructuring plan.
This included placing £325bn in assets in a state insurance scheme. Under the scheme designed to extent another lifeline to banks, RBS will be responsible for the first £19.5bn of losses - or 6pc of the asset value.
The taxpayer will bear 90pc of any losses after that, and RBS incur the remaining 10pc.
RBS will also shift £240bn of non-core assets to a standalone division. These will be sold or run down over five years.
As many as 20,000 jobs could be lost after RBS said it planned to cut costs by £2.5bn.
News of the bank's huge loss follow the BBC's revelation about the scale of former chief executive Sir Fred Goodwin's pension fund, said to be worth £16m. His decision to buy ABN Amro has been widely blamed for making RBS more vulnerable.
The BBC has learned Sir Fred has begun drawing his £650,000-a-year pension.
Treasury Minister Stephen Timms said the government was looking at ways of "clawing back" his payments.
RBS's expected 2008 annual loss compares with its £9.9bn profit in 2007 and £9.2bn profit in 2006.
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