Barclays & RBS: Writedowns & Panhandling
Our Foreign Legion of Dishonor grows...
Yesterday, Collins Stewart Plc analyst Alex Potter:
"Barclays Plc, Britain's third-biggest bank, may need to shed $9.6 billion of assets and raise as much as $12.8 billion in a rights offer.
Today, RBS, Royal Bank of Scotland Group, wrote down $10.1 billion in assets;
$2.8 billion in bond insurance, $3.04 billion in CDO collateralized debt obligations, $2.24 billion in U.S. mortgages and $2 billion in leveraged loans.
The U.K.'s second-biggest lender, will have to raise $6 billion in asset disposals and plans to raise its Tier 1 capital ratio by...
selling $23.7 billion of new shares to investors in Europe's largest rights offer to boost capital depleted by writedowns.
The bank plans to issue 11 new shares for every 18 existing shares at 200 pence each, or 46% below yesterday's close.
Today's Moody's Investors Service said that it may downgrade the B+ financial strength rating and
the Aaa senior debt and deposit ratings of Royal Bank of Scotland Plc and the Aa1 senior debt rating of the group.
Hattip to Bloomberg.
Yesterday, Collins Stewart Plc analyst Alex Potter:
"Barclays Plc, Britain's third-biggest bank, may need to shed $9.6 billion of assets and raise as much as $12.8 billion in a rights offer.
Today, RBS, Royal Bank of Scotland Group, wrote down $10.1 billion in assets;
$2.8 billion in bond insurance, $3.04 billion in CDO collateralized debt obligations, $2.24 billion in U.S. mortgages and $2 billion in leveraged loans.
The U.K.'s second-biggest lender, will have to raise $6 billion in asset disposals and plans to raise its Tier 1 capital ratio by...
selling $23.7 billion of new shares to investors in Europe's largest rights offer to boost capital depleted by writedowns.
The bank plans to issue 11 new shares for every 18 existing shares at 200 pence each, or 46% below yesterday's close.
Today's Moody's Investors Service said that it may downgrade the B+ financial strength rating and
the Aaa senior debt and deposit ratings of Royal Bank of Scotland Plc and the Aa1 senior debt rating of the group.
Hattip to Bloomberg.
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