At long last, RBS is bowing to the inevitable and looking for more equity. Lots of it. And as is so often the case, it’s not the deed itself that makes them look really stupid (why shouldn’t more equity be needed at a time like this ?), as the months of denial.
Back in the summer we covered their ‘successful’ out-bidding of Barclays for Dutch bank ABN-Amro, and wondered at the time whether they’d be pleased with what they’d done. Big take-overs can be really clever when done at the bottom of the market (e.g. BP taking Amoco and Arco when oil was $ 10 / barrel - only a decade ago !). But they look pretty crass when they are carried out on the very brink of a massive down-turn, which was clearly on the cards last September, if not a racing certainty.
So – not very popular with existing RBS shareholders, one might imagine. And there’s another group that may not be over the moon: the
PS - get well soon Mr CU !