RBS chief defends bank despite share crash

20/01/2009

Shares in one of Britain's biggest banks, RBS, fell sharply in value on the London Stock Exchange yesterday.

Investors expressed their concern at the prospect that the government would soon move to take over the troubled firm, pushing its stock below 12p per share - over 65 per cent down on the day.

The government had announced earlier in the day that it would be increasing its stake in the bank, bought last year in a bid to provide stability to the financial system, from 60 to 70 per cent.

Despite the turmoil, the bank was defended by its chief executive, Stephen Hester, in an interview with the Scotsman newspaper today.

He said that there was a "sharp dividing line" between shareholders in the bank and the bank's customers, who are protected by compensation guarantees for their savings and current accounts.

"RBS, in all its different brand names, provides excellent products and services around the world," he added.

"There is absolutely no sense anywhere of people not wanting to do business with us because of the performance of our shares."

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