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| Version 0 | Version 1 |
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| RBS due to report record UK loss | RBS due to report record UK loss |
| (10 minutes later) | |
| The Royal Bank of Scotland (RBS) is expected to report the biggest annual loss in UK corporate history. | The Royal Bank of Scotland (RBS) is expected to report the biggest annual loss in UK corporate history. |
| RBS, which had to be bailed out by the government last November, has already warned that its 2008 losses may reach as high as £28bn. | RBS, which had to be bailed out by the government last November, has already warned that its 2008 losses may reach as high as £28bn. |
| The BBC has learned that its ex-Chief Executive Sir Fred Goodwin has begun drawing his £650,000-a-year pension. | The BBC has learned that its ex-Chief Executive Sir Fred Goodwin has begun drawing his £650,000-a-year pension. |
| Treasury Minister Stephen Timms said the government was looking at ways of "clawing back" his payments. | Treasury Minister Stephen Timms said the government was looking at ways of "clawing back" his payments. |
| The government had to spend £20bn bailing out RBS last November, after the firm found itself over-exposed to bad US debt as the impact of the turmoil in the global banking sector intensified. | The government had to spend £20bn bailing out RBS last November, after the firm found itself over-exposed to bad US debt as the impact of the turmoil in the global banking sector intensified. |
| The bank, of which the government now owns 68%, is also due to detail recovery plans. | The bank, of which the government now owns 68%, is also due to detail recovery plans. |
| About £20bn of its total loss is expected to come from the bank having to write down the value of its assets. The current record annual loss is £14.9bn. | About £20bn of its total loss is expected to come from the bank having to write down the value of its assets. The current record annual loss is £14.9bn. |
| RBS is expected to unveil plans to sell off at least a fifth of the business, including much of its toxic debt, and detail possible additional job cuts. | RBS is expected to unveil plans to sell off at least a fifth of the business, including much of its toxic debt, and detail possible additional job cuts. |
| 'Public money' | 'Public money' |
| News of the bank's huge loss follow the BBC's revelation about the scale of Sir Fred's pension fund, said to be worth £16m. | News of the bank's huge loss follow the BBC's revelation about the scale of Sir Fred's pension fund, said to be worth £16m. |
| His decision to buy ABN Amro has been widely blamed for making RBS more vulnerable. | His decision to buy ABN Amro has been widely blamed for making RBS more vulnerable. |
| I don't think we'll see much change in the markets... it's already been factored in Dr Catherine SmithInternational banking expert Huge pension for former RBS boss | I don't think we'll see much change in the markets... it's already been factored in Dr Catherine SmithInternational banking expert Huge pension for former RBS boss |
| Labour MP John McFall, chairman of the Commons Treasury committee, said there was a "case for redress" and urged the government to scale back his pay-outs. | Labour MP John McFall, chairman of the Commons Treasury committee, said there was a "case for redress" and urged the government to scale back his pay-outs. |
| Conservative MP Michael Fallon said ministers should have stopped Sir Fred's pension when they took over the bank in October 2008. | Conservative MP Michael Fallon said ministers should have stopped Sir Fred's pension when they took over the bank in October 2008. |
| "This is public money in the end - £650,000 a year for life," Mr Fallon said. "It's wrong." | "This is public money in the end - £650,000 a year for life," Mr Fallon said. "It's wrong." |
| Mr Timms said UK Financial Investments, which manages the government's shareholding, has been working to reduce the pension. | Mr Timms said UK Financial Investments, which manages the government's shareholding, has been working to reduce the pension. |
| Earlier this month, Chancellor Alistair Darling said the government would be limiting any bonuses RBS paid to its staff. | Earlier this month, Chancellor Alistair Darling said the government would be limiting any bonuses RBS paid to its staff. |
| The bank's new chief executive Stephen Hester has identified between £200bn and £300bn-worth of non essential businesses that could be sold, as the firm aims to focus instead on its profitable core retail banking operations. | The bank's new chief executive Stephen Hester has identified between £200bn and £300bn-worth of non essential businesses that could be sold, as the firm aims to focus instead on its profitable core retail banking operations. |
| It has already announced two tranches of job losses. | It has already announced two tranches of job losses. |
| Earlier this month, it said it would remove 2,300 UK positions or about 2% of its 106,000 British workforce. And back in October, it announced 3,000 global job cuts. | Earlier this month, it said it would remove 2,300 UK positions or about 2% of its 106,000 British workforce. And back in October, it announced 3,000 global job cuts. |
| RBS's expected 2008 annual loss compares with its £9.9bn profit in 2007 and £9.2bn profit in 2006. | RBS's expected 2008 annual loss compares with its £9.9bn profit in 2007 and £9.2bn profit in 2006. |
| The bank is further due to announce that it has agreed terms with the government over its participation in the Asset Protection Scheme. | The bank is further due to announce that it has agreed terms with the government over its participation in the Asset Protection Scheme. |
| Under the scheme, the government underwrites 90% of a bank's bad debts in return for an agreed fee. | Under the scheme, the government underwrites 90% of a bank's bad debts in return for an agreed fee. |
| As a result, the taxpayer will ultimately be liable. | As a result, the taxpayer will ultimately be liable. |
| Commentators said that RBS had been further weakened by excessive efforts to expand the business, particularly its ill-fated decision to buy ABN Amro for 71bn euros ($91bn; £63bn) in 2007. | Commentators said that RBS had been further weakened by excessive efforts to expand the business, particularly its ill-fated decision to buy ABN Amro for 71bn euros ($91bn; £63bn) in 2007. |
| RBS said most of its £20bn write-downs were related to the ABN Amro takeover, in which banking analysts said it paid far too much and bought at exactly the wrong time. | RBS said most of its £20bn write-downs were related to the ABN Amro takeover, in which banking analysts said it paid far too much and bought at exactly the wrong time. |
| But international banking expert Dr Catherine Smith predicted that the announcement's impact on the markets would be marginal. | But international banking expert Dr Catherine Smith predicted that the announcement's impact on the markets would be marginal. |
| "I don't think we'll see much change in the markets," she said. "As far as the markets are concerned, it's already been factored in to most of the figures." | "I don't think we'll see much change in the markets," she said. "As far as the markets are concerned, it's already been factored in to most of the figures." |
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