RBS prepares fundraising plan
Written: 18th April, 2008
Britain's second largest bank, Royal Bank of Scotland, is expected to ask shareholders for up to £12bn of extra cash to improve its financial position.
Several newspapers are reporting that RBS will raise the funds by selling shares to existing investors.
The global credit crunch has meant banks worldwide are keen to shore up their capital positions - and it is thought others may follow RBS's move.
RBS, owner of NatWest, Ulster Bank and insurer Direct Line, has not commented.
In a statement, it would only confirm that it would give a trading update next week as planned. The update is due ahead of its annual meeting on Wednesday.
Analysts stressed that this was not something that should worry people with accounts at any RBS banks.
"This is not a customer issue, it's a shareholder issue," said Justin Urquhart Stewart from Seven Investment Management.
Source BBC news