Scottish banks reveal further losses and jobs cuts

Published on Saturday 7 November 2009 16:37

ANOTHER torrid week for Scottish banks started with the announcement by Royal Bank of Scotland that it would shed 3,700 jobs from its 2,300 UK branches, with fears the job cuts would disproportionately affect employees north of the Border, writes Erikka Askeland.

On the same day Scottish financier Ben Thomson signalled an interest in buying out 185 Lloyds TSB branches, to be sold as part of a fraught deal negotiated between Lloyds Banking Group and the European competition commissioner Neelie Kroes.

Tuesday was the much trailed revelation of the extent of Kroes' Competition Commission demands on the bailed-out Scottish banks. Alongside a further 40bn for both RBS and Lloyds – described as a "new world record" for bank bail-outs by the Tories – the banks were forced to sell off a total of 900 branches between them. RBS would also have to sell a profitable commodities trading business and its global payments division.

Lloyds was able to escape the government asset protection scheme but would need to raise 13.5bn from investors – including 5bn from the taxpayer.

On Friday, RBS revealed losses had more than halved in the third quarter.