Wild And Crazy Predictions


We love wildly irresponsible predictions. If they don't come to pass, well, it was just comedy. If, however, they do....
So when RBS announces not just that they are writing down $12 billion, but that they are looking to raise $20+ billion in capital (the largest rights issue in British banking history), and there is absolutely no truth whatsoever at all that the government applied any pressure on the bank, none, really, we smile a little. It's a sad smile though. Seriously.
As if that is not enough, add Shades of Schwartz(tm): Fred Goodwin, RBS' Chief Executive, promised (for real this time) that RBS would not need to raise any new capital. $0-$20 billion is not really that wide a spread, when you think about it though.
But if you are an existing shareholder, don't worry. They still plan to pay their pending dividend... in shares.
RBS Takes Further Write-Downs, Plans $23.78 Billion Rights Issue [WSJ]