Hard Times for Ahead for Rbs

Summary


SHARES in Royal Bank of Scotland rebounded almost 9 per cent yesterday to 373.25p. But the bank is still reeling from one of the most convulsive periods in its history - and with investors fearing a rocky year ahead.

Even after yesterday's bounce, the shares are down 48 per cent from their pre-credit crunch peak. So why has the bank been hit so hard? There were signs of under-peformance before credit crunch worries set in. A key concern has been the spate of acquisitions in recent years, culminating in the GBP 53 billion consortium bid last year for Dutch banking giant ABN AMRO.

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Extract


Hard Times for Ahead for Rbs

As a legacy of this spending spree, the balance sheet ...

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