Royal Bank of Scotland (RBS) Runs Out Of Cash!
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/04/17/cnscot217.xml
...Asks for £12BN from shareholders to keep going....
Royal Bank of Scotland calls on investors for cash in rights issue
Royal Bank of Scotland is preparing to launch a rights issue of between £5bn and £12bn in a move that will raise questions about the future of the group's chief executive Sir Fred Goodwin.
The £37bn group has decided to tap shareholders for capital due to worsening sub-prime writedowns and its already fragile tier one capital position, which makes it the most leveraged of the European banks.
Goldman Sachs and Merrill Lynch are arranging the rights issue and RBS wants it to be fully underwritten.
News of the plan - which will send shockwaves through the City - comes as the City faced its blackest day in almost twenty years with investment banks revealing plans to axe more than 3,500 jobs in London.
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