Video: Gordon Brown spits dummy at Royal Bank of Scotland
20th Jan 09, 10:45am
After the first GBP250 billion UK bailout failed, English prime minister Gordon Brown has now unveiled a second package worth GBP100 billion to restart lending. It includes insurance for toxic debt and new guarantees for asset backed securities. In addition, the Bank of Engalnd is lending GBP50 billion direct to corporates. Royal Bank of Scotland shares fell two thirds to 11p after it said it may post a GBP28 billion loss This would be the worst in UK history and Brown was reportedly "˜angry' at RBS' "˜disastrous' takeover of ABN Amro just three months before the credit crunch hit. The British government now effectively owns the Royal Bank of Scotland, one of its biggest banks.