|
|
Article: Global slump fears as RBS expected to reveal GBP 1 billion loss: Analysis: When does a write-down become a write-off?
- Article from:
- The Scotsman
- Article date:
- August 8, 2008
- Author:
-
|
Copyright informationCopyright 2008 The Scotsman. Provided by ProQuest LLC. (Hide copyright information)
|
EARLIER this year, RBS finance director Guy Whittaker and his
auditors signed off GBP 5.9 billion of write-downs - cash the bank
glumly believed it could never see again.
He had already talked through the figures in detail with the
board, in particular the chief executive, Sir Fred Goodwin.
The numbers had been reached after hundreds of staff had pored
over the value of debts and loans in small parts of the business in
the search for assets gone bad. They had passed their findings up
the management chain to calculate the overall hit to be taken.
Like most of Britain's banks, RBS's write-downs are
overwhelmingly related to exotic assets, linked to the global credit
crunch. A substantial ...