Top executives from RBS, HBOS, Lloyds TSB and Barclays were last night locked in talks with officials in a frantic attempt to hammer out details of the capital increase before the markets reopen today.
Under the plans being discussed, RBS is likely to raise as much as £20bn in fresh capital. Of this, £15bn would come in the form of a placing of ordinary shares with the government, with the remainder in the form of preferred shares.
Existing RBS shareholders would be given an opportunity to buy the shares, but if they did not the government is expected to be left with a controlling stake in the bank.
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