A SECRET run on Royal Bank of Scotland almost forced the bank into collapse on each of the last four trading days before it was bailed out by the government last October, The Sunday Times can reveal.
A SECRET run on Royal Bank of Scotland almost forced the bank into collapse on each of the last four trading days before it was bailed out by the government last October, The Sunday Times can reveal.
Between £1 billion and £2 billion was being sucked from RBS every day for more than a week, according to sources involved in the bailout. This created an even bigger funding problem for the bank, which was already struggling to finance overnight credit lines in global money markets.
Coutts, the private banking arm of RBS, was hit by wealthy individuals spreading deposits around different financial institutions to prepare for any potential collapse. At the time, only £35,000 of any individual’s savings were safe in the event of collapse — substantially less than the average balance held by Coutts clients.
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