RBS announces losses of £1.5bn and reveals £125m cost of computer glitch

Source: The Guardian

Stephen Hester, the chief executive of Royal Bank of Scotland, has admitted the reputation of the banking industry is at a new low, as the bailed-out bank was hit by a string of charges caused by computer mistakes and mis-selling financial products – with more to come from the Libor scandal.

First-half losses widened to £1.5bn from £794m the same time last year, amid fresh speculation that a full-scale nationalisation of the 83% taxpayer-owned bank is on the agenda.

Results were hit by the enforced payout of £125m to compensate customers who fell victim to a computer meltdown in June – a cost that could yet rise – and which Hester described as a "significant blot" on the bank's reputation.

Read more: http://www.guardian.co.uk/business/2012/aug/03/rbs-royal-bank-scotland-losses-double