The British government will sharply shake up the banking sector by selling off assets from RBS and Lloyds to form new banks. The government will provide 30 billion pounds to support the changes. HSBC, meanwhile, is to axe 1,700 jobs.
The Royal Bank of Scotland Friday posted a five-fold jump in write-offs linked to the credit crunch in its first-half, and went on to warn that bad debts would remain "high for a while."
The Royal Bank of Scotland, saved from bankruptcy after being partially nationalised by the British government, has announced it lost £857 million after taxes in the first quarter of 2009, hit by write-offs linked to the credit crunch.
The city of London once basked in the glow of being the financial powerhouse of the world But Wednesday's budget has sent a deep chill right across the country.
The Royal Bank of Scotland, saved from bankruptcy after the British government partially nationalised it, announced it would cut around 9,000 jobs in the world, half of them in Britain. The bank hopes to save 2.8 billion euros with the plan.
After posting the largest full-year loss in British corporate history, Royal Bank of Scotland announced the end of its partnership with the Williams Formula One team, depriving the British team of a deal thought to be worth €11.2m a year.
The Royal Bank of Scotland has reported a net loss of 24.1 billion pounds (34 billion dollars, 27 billion euros) in 2008, the largest shortfall ever recorded by a British company. The bank now plans to re-focus its activities on the British market.
RBS 
