RBS posts record $41 billion dollar loss on bad debts

January 19, 2009 by · Leave a Comment
Filed under: Global News 

Ouch for the economy, this is a massive loss to post.  It will be very important to watch how the markets react on this news.  This could generate more continued selling pressure as this shakes investors nerves.  I have noticed that everyone uses bad assets or debts when referring to losses.  I believe that some of these are residential and commercial mortgages but I think the real cause are these credit-default swaps that have gone bad.  

It is insane to bailout any company on these mis-placed bets.  Its corporate welfare to say the least.  I don’t want a single cent of our taxpayer dollars to go to this type of transaction.  No one is telling us the truth because if they did, it would send people into the streets.   When will this lapse in leadership be solved?

News:

Royal Bank of Scotland unveiled the biggest loss in British corporate history, overshadowing a second banking sector bailout and sending its shares reeling to their lowest in over a quarter of a century.

RBS said Monday it was on course to report a 2008 loss of up to 28 billion pounds ($41 billion) and that further hits from bad debts were inevitable, bruising the European banking sector, which fell 8 percent to a 13-year low.

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