As a follow up to the previous post, it seems, to simple little me, a ‘no-brainer’ that when buying a bank you check the quality of the loan book, and look out for any ‘nasties’.
Apparently not for the Royal Bank of Scotland. I see that RBS are the biggest loser in the collapse of Lyondell Chemical.
The Daily Telegraph put it nicely when they said in their report on this story:
“RBS, which has already warned of billions of pounds worth of writedowns in the wake of the credit crisis, may face losses on $3.47bn (£2.34bn) of loans to the [bankrupt] US chemicals company.
News of RBS’s exposure comes as the latest blow to the UK bank following its acquisition of ABN Amro. RBS’s decision to buy the Dutch bank in the face of the economic downturn helped seal the fate of former chief executive Sir Fred Goodwin.”
Of course, being government owned, that’s taxpayers money tha’s been lost.