RBS to lend an extra £6 billion

RBS has said it is likely to lose up to £8 bn for the current year, excluding any writedowns in its holding in ABN Amro which it bought in the previous year.

RBS also said it had agreed with the Treasury to swap the £5bn of preference shares the government holds for new ordinary shares, which will mean the government will now own nearly 70% of the company, up from 58%.