Royal Bank of Scotland Implodes

By Tony, Bank Implode

Once the king of European banks, the Royal Bank of Scotland finally ran out of credit and crashed over the weekend. The bank had been burning white hot profits from leveraged loan buyouts and acquisitions of enormous scale.

The speed of the RBS rescue plan underlines the depth of concern in official circles over the Edinburgh group’s finances.

Fears that RBS (down 31p to 65p) could run out of cash if wholesale lending markets remain shut have wiped over £30billion off the bank’s shares this week alone.

The government will get 60 percent of the bank in return for $35B, which we will consider as cash raised.

The bank survived revolutions, the Great Depression, and two world wars, but finally succumbed to the credit crunch. The banks current and final CEO, Fred Goodwin, reined in an age when competition is sin and self centered greed is virtuous. Read more….