RBS joins toxic group
(17 December 2009 – Europe) Royal Bank of Scotland’s investors have backed the troubled bank in its plans to join the state insurance scheme for toxic assets, raising the government’s stake in the bank to 84 percent after another massive bailout.
At a shareholders’ meeting in Edinburgh, shareholders voted 99 percent in favour of the latest bailout and the participation in the state asset protection scheme.
The vote was conducted one day after the European Commission approved the restructuring of RBS, rescued by the biggest-ever taxpayer bailout during the financial crisis.
The scheme will be an insurance policy on the group’s high-risk assets of around £282 billion (A$508 billion) and the government will inject a further £25.5 billion in the troubled bank.
The newest bailout increases the government’s shareholding from 70 percent to 84 percent and puts the government’s commitment to the bank at between 60 and 100 billion pounds.
The European Commissions competition spokesman said of the state aid, that it is the largest amount ever received by any company in the EU’s history.
RBS chairman, Philip Hampton, on Tuesday said the new state help would allow the bank to weather any more economic storms that may appear on the horizon.
RBS must have the capital resources to withstand pressures on its balance sheet not only in the challenging environment that the bank is experiencing but also in the so-called 'stress cases' that may arise, Mr Hampton highlighted.
The vote was conducted one day after the European Commission approved the restructuring of RBS, rescued by the biggest-ever taxpayer bailout during the financial crisis.
The scheme will be an insurance policy on the group’s high-risk assets of around £282 billion (A$508 billion) and the government will inject a further £25.5 billion in the troubled bank.
The newest bailout increases the government’s shareholding from 70 percent to 84 percent and puts the government’s commitment to the bank at between 60 and 100 billion pounds.
The European Commissions competition spokesman said of the state aid, that it is the largest amount ever received by any company in the EU’s history.
RBS chairman, Philip Hampton, on Tuesday said the new state help would allow the bank to weather any more economic storms that may appear on the horizon.
RBS must have the capital resources to withstand pressures on its balance sheet not only in the challenging environment that the bank is experiencing but also in the so-called 'stress cases' that may arise, Mr Hampton highlighted.
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