Royal Bank of Scotland(RBS Quote) on Tuesday said it is raising $23.9 billion in fresh capital to cover its exposure to bad mortgages and is looking for more, after a big first-quarter loss.
The bank said it suffered $11.7 billion in losses tied to U.S. mortgage loans amid the sharp downturn in the nation's housing market. It expects $8.6 billion in further writedowns on mortgage-backed securities, collateralized debt obligations and other assets.
RBS said it will get its new capital infusion by asking shareholders to approve a rights issue that will offer them 11 new shares for every 18 existing shares at $3.98 apiece. American depositary receipts were recently trading down 26 cents, or 3.5%, to $7.23 on the New York Stock Exchange. ...
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