Second British bank to ask shareholders for cash injection

April 28th, 2008 - 7:42 pm ICT by admin  

DPA
London, April 28 (DPA) Britain’s biggest mortgage lender, Halifax Bank of Scotland (HBOS), is expected to become the second major bank to ask shareholders to bolster its finances through a rights issue, it was reported Monday. HBOS was preparing to ask shareholders to raise 4 million pounds ($8 million) to make up for estimated writedowns of 3 billion pounds.

The plans were due to be made public at HBOS’s annual general meeting in Glasgow, Scotland, Tuesday.

Last week, the Royal Bank of Scotland (RBS) called on shareholders to provide a record 12 billion pounds to improve its balance sheet, weakened by credit crunch-related losses and the acquisition of Dutch bank ABN Amro last year.

The Financial Times reported Monday that RBS would “kick-start” the integration of ABN Amro’s investment banking unit by cutting 7,000 out of 28,000 jobs globally.
DPA

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