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Britain's second-biggest bank is refusing to confirm or deny reports it is planning to ask shareholders for billions of pounds in an attempt to shore up its finances.
Royal Bank of Scotland is said to be aiming for a rights issue worth anything between £5bn and £12bn.
It is suggested that the move is intended to repair RBS'sbalance sheet, which has been damaged by bad debt and the continuing effects of the credit crisis.
A rights issue would see existing investors at the banking group offered new shares at a possible discount price.
It has the potential of raising billions of pounds for RBS, the owner of NatWest, providing much-needed liquidity.
However, it could place further pressure on group chief executive Sir Fred Goodwin.
It has been claimed that shareholders may demand that he steps down in return for their financial injection.
The Daily Telegraph has reported that Goldman Sachs and Merrill Lynch are arranging the rights issue and that RBS is expected to reveal details in a trading update in the next few days.
In a statement, a spokesman for the banking group would only say: "RBS notes recent speculation about a possible rights issue.
"RBS confirms that its Interim Management Report covering trading performance and capital will be made next week."
In February it unveiled profits of £10.3bn, despite hefty losses from the credit crunch. Its underlying figure for 2007 was 9% higher than the previous year.
But write-downs on investments hit by last summer's financial turmoil and the crisis in the US sub-prime mortgage market rose to £2.5bn, it said.
RBS's credit crunch losses totalled £1.6bn, while write-downs at ABN Amro - the Dutch bank it bought last year - were marked down by £900m.
Royal Bank Of Scotland 'Planning Rights Issue' |Sky News|Business
Royal Bank of Scotland is said to be aiming for a rights issue worth anything between £5bn and £12bn.
It is suggested that the move is intended to repair RBS'sbalance sheet, which has been damaged by bad debt and the continuing effects of the credit crisis.
A rights issue would see existing investors at the banking group offered new shares at a possible discount price.
It has the potential of raising billions of pounds for RBS, the owner of NatWest, providing much-needed liquidity.
However, it could place further pressure on group chief executive Sir Fred Goodwin.
It has been claimed that shareholders may demand that he steps down in return for their financial injection.
The Daily Telegraph has reported that Goldman Sachs and Merrill Lynch are arranging the rights issue and that RBS is expected to reveal details in a trading update in the next few days.
In a statement, a spokesman for the banking group would only say: "RBS notes recent speculation about a possible rights issue.
"RBS confirms that its Interim Management Report covering trading performance and capital will be made next week."
In February it unveiled profits of £10.3bn, despite hefty losses from the credit crunch. Its underlying figure for 2007 was 9% higher than the previous year.
But write-downs on investments hit by last summer's financial turmoil and the crisis in the US sub-prime mortgage market rose to £2.5bn, it said.
RBS's credit crunch losses totalled £1.6bn, while write-downs at ABN Amro - the Dutch bank it bought last year - were marked down by £900m.
Royal Bank Of Scotland 'Planning Rights Issue' |Sky News|Business
