Thursday, February 26, 2009
Toxic assets
Posted by David Smith at 12:40 PM
Category: Thoughts and responses

Clearing up the banking mess is proving to be a lengthy and potentially expensive process. This morning the Treasury announced another £13 billion capital injection into Royal Bank of Scotland (after it announced a £24 billion loss for 2008), together with taking £325 billion of the bank's assets under the new Asset Protection Scheme.

The £325 billion is larger than expected and the capital injection was not generally expected. It could have taken the government's RBS stake up to 84% but the Treasury has decided to take it in non-voting shares. This story has a long way to run. Here is Alistair Darling's statement.