Royal Bank of Scotland, which is continuing to build its regional headquarters in Stamford, says it expects to post a record loss for 2008. WNPR's Harriet Jones reports.
RBS says that its losses for last year could top 41 billion dollars - that would be the biggest ever recorded by a British corporation. The bank has struck a new deal that will see the UK government raise its stake in RBS from 58 to 70 percent.
That wasn't well received by investors Monday, and the bank's shares lost two thirds of their value, on fears of a complete nationalization. RBS began building its new North American headquarters in Stamford more than two years ago, and for the time being the construction is proceeding.
The bank has said that the 500 million dollar complex should be complete by March of this year, and will bring together some three thousand jobs, largely from Greenwich and New York.
The company is also the parent of Rhode Island based Citizens Bank, with more than 50 branches in Connecticut. RBS expanded quickly through acquisitions like Citizens from 2003 through to the collapse of the credit markets. Since then its position has unraveled as the extent of its exposure to toxic mortgage assets became clear.