I know it’s hard to believe but it appears that being a Scottish bank hasn’t, as previously thought, been a good enough reason for investors to plough their life savings into a bankrupt Royal bank of Scotland. Go figure.
RBS had another bumper rights issue as part of the deal with
the devil Alistair Darling to get their hands on a few billion more of our hard earned cash. The idea was that they’d get loads of money of the taxpayer and then issue a few million shares to dilute the taxpayers stake in the bank to make sure the UK Treasury was a minority shareholder. Which would have been quite clever if it wasn’t for the fact that the bank is insolvent and the shares quite obviously so high risk as to be worthless as evidenced by the fact that hardly anybody has bought any of the new shares.
The upshot of this is that the UK Treasury now owns 57.9% of “oor bank”. That should please Alex Salmond.