Friday, December 19, 2008

RBS set to ask for £14bn more from govt

RBS set to ask for £14bn more from govt


Royal Bank of Scotland is set to ask for another £14 billion in mortgage guarantees from the Treasury, on top of the £20 billion facility it has already accessed.

The move comes as the mortgage market difficulties take their toll, with 500,000 set to be more than three months in arrears by the end of 2009 and up to 75,000 homes set to be repossessed despite pressures on lenders to keep repossessions to a minimum.

And the news is likely to add to fears - sparked by Bank of England deputy governor Charles Bean yesterday - that UK banks will be asking for more money if they keep lending.

In light of increasing fear that a new round of capital raising may be in the offing across Europe, HSBC and Lloyds have said they don't need any more money.

CITYWIRE.CO.UK

No comments:

Share |