LONDON, Nov 20 (Reuters) - Royal Bank of Scotland's chairman will apologise to shareholders for bringing the bank to its knees at a meeting to vote on a 20 billion pound ($30 billion) fundraising plan on Thursday, the Scotsman newspaper said.
Tom McKillop will tell investors, customers and staff at a meeting in Edinburgh he is 'profoundly sorry' for the reversal from record profits of over 10 billion pounds last year to needing to ask for a government bailout, the Scotsman said.
RBS's second request funding this year has been prompted by billions of pounds in losses on structured credit assets hit by the credit crisis, pressure on capital from last year's purchase of parts of Dutch bank ABN AMRO and the prospect of a recession in many countries.
Shareholders are expected to approve the plan. The bank needs the backing of a majority of voters. Over 96 percent of investors at rival Lloyds TSB on Wednesday backed its part in the government rescue plan.
The bailout could result in Britain's government taking a 58 percent stake in RBS.
It is rare for executives to apologise -- which lawyers have said they counsel against -- and few bankers have said sorry even as their firm has spiralled towards collapse during the credit crisis.
RBS executives, including outgoing chief executive Fred Goodwin, have to date said they were chastened and disappointed by the problems and regretted them.
(Reporting by Steve Slater; Editing by Greg Mahlich) ($1=.6637 Pound) Keywords: RBS/VOTE (steve.slater@reuters.com; +44 207 542 4367; Reuters Messaging: steve.slater.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2008. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Tom McKillop will tell investors, customers and staff at a meeting in Edinburgh he is 'profoundly sorry' for the reversal from record profits of over 10 billion pounds last year to needing to ask for a government bailout, the Scotsman said.
RBS's second request funding this year has been prompted by billions of pounds in losses on structured credit assets hit by the credit crisis, pressure on capital from last year's purchase of parts of Dutch bank ABN AMRO and the prospect of a recession in many countries.
Shareholders are expected to approve the plan. The bank needs the backing of a majority of voters. Over 96 percent of investors at rival Lloyds TSB on Wednesday backed its part in the government rescue plan.
The bailout could result in Britain's government taking a 58 percent stake in RBS.
It is rare for executives to apologise -- which lawyers have said they counsel against -- and few bankers have said sorry even as their firm has spiralled towards collapse during the credit crisis.
RBS executives, including outgoing chief executive Fred Goodwin, have to date said they were chastened and disappointed by the problems and regretted them.
(Reporting by Steve Slater; Editing by Greg Mahlich) ($1=.6637 Pound) Keywords: RBS/VOTE (steve.slater@reuters.com; +44 207 542 4367; Reuters Messaging: steve.slater.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2008. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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