RBS first in line for Treasury handout

Royal Bank of Scotland looks to be first in line to tap the government's £500bn bank rescue scheme, sources said. The embattled bank is understood to be discussing an emergency cash injection of up to £10bn to shore up its battered balance sheet. The move could leave the government in effective control of nearly 50% of the Edinburgh-based lender, depending on how the rescue is structured. The part nationalisation could be confirmed as early as this Tuesday, according to City sources. The speed of the RBS rescue plan underlines the depth of concern in official circles over the Edinburgh group's finances. Fears that RBS (down 31p to 65p) could run out of cash if wholesale lending markets remain shut have wiped over £30bn off the bank's shares this week alone. Since the credit crunch erupted last August its market value has... [read full story]