RBS couldn’t raise the money

RBS failed to get all the money it needed for its rights issue with 300 million shares still in the hands of its underwriters, reports the FT. These shares are to be sold today. This massive $24 billion (£ 12 billion) shows the limits of banks’ ability to raise capital and underscores that Barclays made the correct decision in not having a rights issue in a market swamped by new shares.

“RBS secures 95% take-up of rights issue

By Maggie Urry

Published: June 9 2008 08:00 | Last updated: June 9 2008 08:00

Royal Bank of Scotland confirmed on Monday that 95.11 per cent of the shares offered in its £12bn rights issue had been taken up by investors. The “rump” of nearly 300m shares left with the underwriters – Goldman Sachs, Merrill Lynch and UBS – was to be placed during the day.”
–FT, 09 Jun 2008