RBS full review starts today
A full review of Royal Bank of Scotland gets under way today after shareholders overwhelmingly approved a £20bn-bail out plan for the company.
The bank’s new chief executive Stephen Hester conceded that job losses were expected, but said he wanted RBS to move forward following its financial difficulties.
At a general meeting of the RBS Group in Edinburgh yesterday shareholders voted 99% in favour of the rescue plan, which will see the bank offer £15bn in new ordinary shares, with the Government promising to buy up any remaining.
The Government has also committed to buying £5bn in preference shares which RBS will buy back in time.
The drastic fundraising move - which could put nearly 60% of the company in public hands - comes on top of a £12bn rights issue by RBS earlier this year before the financial crisis worsened.
During yesterday’s meeting, outgoing chairman Sir Tom McKillop and former chief executive Sir Fred Goodwin apologised to shareholders for the company’s financial situation.
Mr Hester replaces Sir Fred, who tendered his resignation in October and stood down from his post yesterday.
Sir Tom told shareholders the "full strategic review" would focus on the businesses where RBS had stable, profitable and market-leading customer franchises.
