Is RBS over the worst?

The bank loses billions again, but this could be the year it lays its haunting 'legacy issues' to rest.

by Adam Gale

If you thought you were getting a bargain in August when George Osborne sold £2.1bn worth of RBS shares at a 2.3% discount, you may want to avoid looking at the following chart.

 

Rollercoasters can't keep going down forever, can they? Source: Yahoo Finance

RBS shares have fallen 44% from their summer high. The bank has been tormented by ‘legacy issues’ from the bad old days – charges over the likes of PPI and toxic mortgages, and the heavy costs of dismantling its Fred Goodwin-era investment bank. Investors underestimated quite how painful and persistent these problems would be. Shares fell 9% just this morning to 222p on the news the bank lost £2bn last year, its eighth consecutive full-year loss.

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