RBS continues to face asset financing problems despite the upturn in confidence, as a result of its exposure to losses on a German property fund formerly managed by Morgan Stanley.
Commercial finance used to purchase German properties at the peak of the market is set to come back to haunt the Royal Bank of Scotland (RBS).
Asset financing estimated to be in excess of £1.8 billion was handed to a fund managed by Morgan Stanley to support a
development investment in 28 properties, reports the Financial Times.
However, with the value of the portfolio thought to have dropped significantly since the purchase, RBS has now been left to manage the losses after the fund handed back the keys, according to the newspaper.
The plight of the bank following the economic downturn and the success of its recovery plan has been thrown into doubt today, after it emerged that two bankers have resigned over frustrations over a newly-imposed, taxpayer-backed bonus policy.
According to the Telegraph, senior bankers at the lender whose books were exposed to commercial finance breakdowns during the credit crunch quit on Friday from the investment banking arm of the bank.
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