ROYAL Bank of Scotland today outlined its plans to take £5 billion from the Government as part of its part-nationalisation scheme.
The Edinburgh-based bank also announced details of its appeal for another £15bn from its shareholders in a share placing that is underwritten by the Government.
It made the announcement as it revealed it has continued to suffer pain as a result of
the credit crunch, adding another £206 million of writedowns in the third quarter.
The figure is in addition to the £5.9bn of writedowns that it reported in the first half of the year.
Underlying earnings so far this year are also eight per cent lower than at the same period last year.
It said today a group-wide overhaul was under way and that it hoped to buy back the Government's £5 billion stake "as soon as it is prudent to do so".
The Government stake will be invested in a new company, chaired by former Lloyds TSB finance director Sir Philip Hampton, which the Treasury will manage at "arms length".
Today it also emerged The Bank of Scotland and TSB names could survive as a sub-brand of the Lloyds Banking Group after the takeover of HBOS is completed.
Lloyds has confirmed that two of Scotland's most historic banking names will be lost when it takes over Edinburgh-based HBOS, but it has indicated that the brands could still be used on the high street under the umbrella of the Lloyds Banking Group.
Chief executive Eric Daniels said: "What we have said is that the plc or the group branding will be Lloyds Banking Group, that will be the umbrella under which the brands go. We may or may not use that one on the high street."
He added: "Bank of Scotland, Halifax or Scottish Widows, we believe they are all important in their own right. They appeal to different kinds of customers. What we will probably see is... under that umbrella brand will be several sub-brands."
Meanwhile, Intelligent Finance founder Jim Spowart has been contacted by the Takeover Panel to get details of his intentions. He has claimed to be working on a counter bid for HBOS with an unnamed merchant bank.
Mr Spowart said: "I have had a frank conversation with them (the Panel) and given them a briefing. I gave them straight answers.
"I suspect they are talking to the bankers (working for the counter-bidder)."
The bank is expected to disclose its interest within days.
The full article contains 428 words and appears in Edinburgh Evening News newspaper.
