RBS nears nationalisation as state increases stake to 84%

By Rory Reynolds

THE UK Treasury is to plough billions of pounds into the beleaguered Royal Bank of Scotland, as part of a massive state-backed insurance scheme.

The Scots bank will become 84 per cent owned by the taxpayer, bringing it a step closer to being completely state-owned.

A Treasury announcement this week will confirm that RBS is to sign up to a controversial £270billion deal to pump government funds into a state insurance scheme.

RBS – which was once the richest bank in the world by assets, and at the centre of the UK banking crisis – will receive up to £19billion of new capital.

The move will mean that the organisation – which is already 73 per cent state-owned – will be virtually nationalized, with only a handful of private shareholders remaining.