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This RBS?

Royal Bank of Scotland (RBS.L) was forced to reveal yesterday that it has lent $3.47bn (£2.34bn) to Lyondell Chemical, the bankrupt US chemicals company. Analysts warned that RBS, the biggest lender to Lyondell, was at risk of losing a sizeable proportion of the money.

RBS inherited the loans from its ill-fated acquisition in 2007 of ABN Amro's investment bank. The loans are thought to include $1.6bn worth of lower-ranked credit that could lose all of its value. ABN Amro is listed as Lyondell's biggest secured creditor in documents filed in the US bankruptcy court in New York.

The potential loss is the latest banana skin for RBS linked to the £10bn ABN Amro deal. RBS's pursuit of the Dutch bank during the financial meltdown helped to seal the fate of Sir Fred Goodwin, who quit as chief executive late last year. Last month, RBS revealed it could lose £400m from Bernard Madoff's alleged $50bn fraud in the US because of deals done by ABN.

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GS victim. Really?

Diversity is the key to economic and political evolution.

by Cat on Mon Apr 19th, 2010 at 10:39:24 AM EST
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