RBS posts record £40bn Pre-tax loss

Andrew64

That's 24.1 Billion after tax, etc!

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/4836849/RBS-posts-record-40bn-pre-tax-loss.html

ad44downey

Not to worry, we the taxpaying mugs will pick up the bill for them.

ad9898_3

Andrew64 wrote: »

That's 24.1 Billion after tax, etc!

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/4836849/RBS-posts-record-40bn-pre-tax-loss.html

With these kind of losses, it just shows that 2007 house prices have gone, not just for now, but forever. Welcome, to the real world.

Andrew64

ad44downey wrote: »

Not to worry, we the taxpaying mugs will pick up the bill for them.

According to this article we are - to the tune of 25 Billion!:mad:

http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article5806650.ece

piggeh

25 Billion is small change, we cna pay that easily with a bit of inflation and QE.

Andrew64

Looks like we could end up owning nearly all of RBS.

http://www.guardian.co.uk/business/2009/feb/26/rbs-record-loss

RBS record losses raise prospect of 95% state ownership

The troubled bank needs to sell up to £19.5bn new B shares to the taxpayer in order to insure £300bn of its most troublesome assets. As a result, the taxpayer's voting rights over the bank would increase to 75% from almost 70% now. But Stephen Hester, the new chief executive, said the government's "economic interest" could rise to 95% "depending on how things work out".

bubblesmoney

Chief executive Stephen Hester said: "The economic stake could be anywhere from 75% frankly all the way up to 95%."

http://money.aol.co.uk/nationalisation-looming-at-rbs/article/20090225221136124494026

but dont forget this crucial bit about the tax payers insuring their toxic debts. when that can gets opened sooner or later then guess who eats the crap. you can bet it will be the tax payer.

The firm - already 70% state-owned - is raising the extra funds to strengthen its balance sheet and insure around £325 billion in toxic debts.

thats just the RBS toxic debt. dont forget the equal amount of Lloyds+HBOS toxic debt coming to the tax payer. barclays seems to be wanting to get onto the tax payer insurance bandwagon as well. the more the debt the merrier gordon thinks we will all be. no more boom and bust like he said. maybe he just meant it will be only bust and bust instead.

AIG one of the worlds biggest insurers went bust insuring toxic debts and now gordon (UK govt) wants to insure the worst ones by putting yours and my neck on the line protecting these bloody reckless lenders who spirited away bonuses all these years on atrocious lending practices. and they are still making merry while putting their snouts into taxpayers pockets.

get strapped down the horror show joy ride has just started courtesy of lax regulation and even more stupid bank rescue policies by stealing from peter to pay paul.

lrr_2

This company is a joke!

Mismanagement on the greatest scale ever and they get a bonus for doing it!

Criminal charges should be brought against them!

beingjdc

Shares up 27% today thanks to the latest Government subsidy plan.

Cannon_Fodder

Andrew64 wrote: »

That's 24.1 Billion after tax, etc!

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/4836849/RBS-posts-record-40bn-pre-tax-loss.html

So AFTER tax the loss is reduced...

Not got my head on straight this morning - so HMRC "give" (or discount) them £16Bn BACK because of the loss...???

Doesn't sound right...

chewmylegoff

Cannon_Fodder wrote: »

So AFTER tax the loss is reduced...

Not got my head on straight this morning - so HMRC "give" (or discount) them £16Bn BACK because of the loss...???

Doesn't sound right...

essentially they will have booked an accounting entry recognising that they can offset the loss against future profits. there will be no immediate refund paid to RBS (save what they may have paid on account this year already), but they will pay less tax in the future as they offset their losses.

a loss of £40bn, will give a deferred tax asset of £12bn (30%). so there must be something else in there as well. net interest received on non banking activities perhaps.