Article: Global slump fears as RBS expected to reveal GBP 1 billion loss: Analysis: When does a write-down become a write-off?

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 ...

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