Royal Bank of Scotland Leads Global Bank Losses

Royal Bank of Scotland's catastrophic collapse has put it in the embarrassing position of being the worst performer among the world's banks last year, according to a leading industry journal. The bank's colossal losses of £36 billion during 2008 attributed to a massive write-down on its acquisition of Dutch rival ABN Amro and soaring bad debts. This financial meltdown has resulted in the bank being 70% owned by the taxpayer, a financial reckoning that has led to significant job losses.

Key Takeaways:

Royal Bank of Scotland led the world's banks in losses, with a staggering £36 billion in 2008, according to The Banker magazine.
The bank's losses were primarily caused by a £24.1 billion write-down on its acquisition of ABN Amro and £11.9 billion in bad debts.
The bank is now 70% owned by the taxpayer and is in the process of shedding tens of thousands of jobs.
New chief executive Stephen Hester received a £9.6 million pay and shares package, which sparked controversy.
Ex-chief executive Sir Fred Goodwin agreed to surrender part of his £703,000 annual pension.
JPMorgan was the world's strongest bank in the list, with a strong Tier 1 capital.
ICBC was the most profitable bank last year, with earnings of $21.3 billion.

Statistics:

£36 billion: RBS's losses in 2008.
£24.1 billion: Write-down on ABN Amro acquisition.
£11.9 billion: Bad debts.
70%: Taxpayer's ownership of RBS.
10,000+: Number of jobs to be shed by RBS.
£9.6 million: Stephen Hester's pay and shares package.
£703,000: Sir Fred Goodwin's annual pension.
85%: Slump in global bank profits.
$115 billion: Global bank profits in 2008.
2.69%: Return on equity for global banks.

Sources:

The Banker magazine