RBS plunges £6b into the red

The Royal Bank of Scotland posted a net loss of £6 billion ($8.9 billion) last year, much larger than the £2 billion loss recorded in the previous year. The British government holds an 82 per cent stake in RBS after bailing out the stricken bank in 2008. RBS also announced plans to sell assets and further reduce its investment banking business. The bank said it planned to sell a stake in the Citizens Financial Group, the US lender it bought in 1988, and would continue to reduce its investment-banking operations by cutting risky assets and eliminating jobs. The moves are intended to bolster capital levels and refocus operations, part of a turnaround effort initiated by Stephen Hester, the bank's chief executive. Like many rivals, the bank is struggling with the legacy of the global financial crisis and legal issues.