RBS boss 'sorry' over bail-out plan

5:37pm Thursday 20th November 2008

The chairman of the Royal Bank of Scotland apologised to shareholders ahead of a vote on a £20 billion Government bail-out package.

Sir Tom McKillop expressed his "profound" regret over the proposed plan - which could put nearly 60% of RBS in public hands.

He was speaking at the company's general meeting in Edinburgh.

Shareholders will vote on the proposed package, which will see the bank offer £15 billion in new ordinary shares, with the Government promising to buy any remaining.

The Government has also committed to buying £5 billion in preference shares, which RBS will buy back in time.

Addressing the meeting, Sir Tom said they faced "unprecedented" challenges as an institution, a country and part of the world financial system.

"I, as chairman of RBS group, both personally and in the office I hold, am profoundly sorry about the position we have reached. I feel this sincerely, on a number of levels and for a variety of reasons, but I want to highlight just a few.

"I am sorry about the very real financial and therefore human cost that those who have invested in us now feel and recognise how seriously this has impacted shareholder confidence in our RBS.

"And I am also sorry if any of our customers have suffered anxiety as a result of the situation."

He added: "The buck stops with me as chairman and with the leadership of the group. Accountability has been allocated and fully accepted."