High Fives at Rbs As Hester Cuts Sweet Deal ; City Spy Cityspy@Standard.Co.Uk
Evening Standard - London › February 27, 2009
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Summary
HIGH fives at Royal Bank of Scotland at the deal struck by new chief exec Stephen Hester with the Government.
The City is agog at the payment of Pounds 6.5 billion to insure Pounds 325 billion of toxic rubbish. How much of the stuff will actually turn out to be worthless? City Spy understands that around half is the likely proportion. Of particular concern are the assets that were underwritten by the US monoline insurers. They are feeling the strain and are going to be in no position to pay up. What number are we talking about? "Oh, Pounds 100 billion worth, according to RBS's 'negative basis book'," says City Spy's man with sight of the red ink. That should comfortably provide the bulk of the coming write-off.See the full content of this document
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High Fives at Rbs As Hester Cuts Sweet Deal ; City Spy Cityspy@Standard.Co.Uk
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