British Bank Braced for £28 billion loss

Royal Bank of Scotland which was part of October 2008's banking bailout in the UK is in line for the biggest loss in UK corporate history.

The bank is currently mainly owned by the government; Stephen Hester, the chief executive said it could make a full-year loss of up to £28 bn for 2008, the UK government is expected to pump an extra £5 bn into the bank. The lenders share price fell 40% to 21p in early trading today.

In the meanwhile my take of the UK government's second bailout package is that it is designed to urge banks to lend to small businesses and homeowners, and works more like an insurance policy basically tackling the lack of trust between banks and investors by insuring £120bn of bad loans held by banks, any failure in this plan would mean nationalisation of banks [while IMF tells African nations to privatise!, oh the joke of it all].

Lets look at this montrous amount of £28bn that could be above the UK's defense budget in Malawi Kwacha terms at todays rate of 1 GBP = 207.26719 MWK as per http://www.exchange-rates.org/converter/GBP/ MWK/28/Y - thats uhm [sorry my calculator will not be able to handle the zero's, let me truncate the number, ok here it is] Malawi Kwacha 6 trillion!!! Need I say more about the credit crunch! and thats only the Royal Bank of Scotland.