RBS heads for record loss on ABN hit

Royal Bank of Scotland said it made a loss of over 20 billion pounds ($30 billion) last year, the biggest loss in British corporate history, including a huge goodwill hit on its purchase of parts of ABN AMRO in 2007.

RBS said credit and market conditions deteriorated further in the fourth quarter and it will report a loss before goodwill impairments of between 7 billion and 8 billion pounds for 2008.

It expects a goodwill impairment charge of between 15 billion and 20 billion pounds, largely related to its purchase of parts of ABN. It was still assessing the goodwill impairment, it said.

RBS warned on its 2008 alongside news of a second UK bank rescue plan.

The UK government will replace the 5 billion pounds of RBS preference shares it holds with ordinary shares. That could increase Britain's stake in the lender to near 70 percent from 58 percent.