Financial Times FT.com

RBS taps UK Treasury for £25.5bn

By By Peter Thal Larsen, George Parker and Jane Croft

Published: February 26 2009 07:48 | Last updated: February 26 2009 22:33

Royal Bank of Scotland struck a landmark deal on Thursday that will see the government inject up to £25.5bn into the troubled bank and insure £325bn of its assets.

The deal – which came as RBS reported the biggest annual loss in UK corporate history – could be the first of a series by Britain’s big banks that could massively increase the exposure of taxpayers to potential losses on loans and credit assets.

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