RBS said 2009 would be another tough year for the bank
Royal Bank of Scotland (RBS) has announced the largest annual loss in UK corporate history and is to receive a further £13bn of taxpayers' cash.
RBS said that its 2008 loss totalled £24.1bn ($34.2bn).
It also said it would put £325bn of toxic assets into a scheme that offers insurance for any further losses.
RBS is under fire over the pension of former boss Sir Fred Goodwin and the government is looking into whether some of the pension can be clawed back.
Speaking at a news conference, RBS chief executive Stephen Hester said the bank was "under no illusions" about the scale of the losses.
He added that it was important "to think about the past, to know what went wrong, to disclose it and to address those issues".
Gordon Brown said nobody can support 'extensive pension arrangements' at this time
The day's key developments include:
RBS said it would make "sweeping" changes to its structure following the loss and did not rule out substantial job cuts
It will put £325bn of toxic assets into a new government insurance programme. RBS will be responsible for the first £19.5bn of any losses on the insured assets and pay £6.5bn to take part in the scheme
The government will inject £13bn into RBS to strengthen its balance sheet on top of the £20bn the government already injected into RBS last year. The bank will have access to another £6bn should it need it.
The bulk of RBS's £24.1bn loss for 2008 stemmed from a £16.2bn write-down of assets, which was mainly linked to its purchase of ABN Amro.
RBS chairman Sir Philip Hampton blamed the loss on "unprecedented turbulence" in financial markets and warned that 2009 would be another tough year for the 282-year-old bank.
We are extremely frustrated by the lack of clarity over the company's restructuring proposals
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