RBS confirms rights issue plans

My Account
Logout

Create an Evening Standard Account

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Welcome! Sign in here

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Forgot your password ?

Registration

* indicates fields that are mandatory

Email *

Password *

Confirm Password *

First name *

Surname *

Postcode *

Country *

Mobile phone number

Username *

Gender *

Year of birth *

When you sign up...

You will have access to all our online competitions, discounted offers and can post comments on our site.

You will also receive The Weekender newsletter sent every Thursday - it’s full of fantastic offers and ideas for the weekend. You can update your email preferences in your account page when you log in.

Other newsletters and emails

Homes & Property Newsletter - Yes I want to receive the weekly email with all the latest news on property in the capital

Occasionally we would also like to send you relevant emails detailing specific offers either from ourselves or carefully selected partners. If you would prefer not to receive these then please tick the appropriate boxes below. We will never pass on your details.

I do not want to receive additional offers and information from the Evening Standard

I do not want to receive additional offers and information sent by Evening Standard on behalf of carefully selected partners

Terms and Conditions

* I have read, understood and agree to be bound by the terms and conditions of Evening Standard

Registration

Mail Sent for Registration Confirmation.

A confirmation email has been sent. Please activate your account by clicking on the activation link sent in your mail box.

Royal Bank of Scotland told the stock market that it was "considering a rights issue" and would make a further announcement "in due course".

The bank - which could ask shareholders for as much as £12 billion - is looking to strengthen a balance sheet weakened by losses from the credit crunch and its acquisition of Dutch rival ABN Amro last year.

It is expected to give more details of its plans to investors on Tuesday.

RBS is set to be the first in a succession of major banks to call on shareholders for extra cash as the credit crunch bites.

But chief executive Sir Fred Goodwin will also come under pressure from investors asked to stump up the money following the expected move at its annual meeting in Edinburgh on Wednesday.

The rights issue would see existing shareholders at the group offered new shares at a possible discount price. Although it would help raise billions of pounds of capital, shareholders may demand that Sir Fred steps down in return for their financial injection.

RBS could also raise billions through the sale of train leasing business Angel Trains as well as insurance companies First Direct and Churchill, according to weekend reports.

Churchill was bought from Credit Suisse in 2003 for £1.1 billion, while Direct Line could be worth around £4 billion.

The bank may also unveil around £5 billion extra in losses on mortgage-backed investments hit by the crunch - on top of the £2.5 billion write-down already taken at the group's annual results, which showed profits of more than £10 billion in 2007.