The arrangement of the Protection of Assets, which is supported by tax payers, aims to strengthen bank balance sheets and banks to encourage more companies and individuals to borrow. Chairman Philip Hampton accused the massive loss on

"unprecedented turbulence" in financial markets and deteriorating conditions around the world.

"We are continuing our independence to the British government and taxpayers and are very grateful for their support," he said. He warned that 2009 would be another tough years. Most of the losses came as RBS made a £ 16.2billion in poorly peforming assets, mainly due to its 2007 acquisition of ABN Amro at the height of the tree-beat writing. The bank said its total tax loss for 2008 on a statutory basis was £ 40.7billion. It said underlying losses is £ 7.9billion. RBS will be £ 6.5billion to the Treasury to the Order of Protection of Assets pay to participate, by the issue of the shares of B, the next issue will be funded £ 13billion, it will agree to certain UK tax losses and allowances not to require. The new shares were to group 'count; s core capital. It said the first responsibility for losses on the £ 19.5billion in assets as part of the system are ensured.

"Participation in this scheme would take to reduce risk to shareholders while providing increased support to UK customers through increased borrowing," help, RBS said President Stephen Hester.

"It would increase security at the market potential losses on a significant part of our balance sheet." limiting supply, the Group of Banking of Lloyds in the scheme would also have to participate, taxpayers could see £ 600billion guarantee to value toxic debt. M. Hester also announced a "on, sweeping" shock-up from Group 's business. He said the bank in two arms, with banks' are separated, grouped s riskier assets and operations. RBS promised to lend to UK homeowners and businesses by £ 25billion over the next 12 months to raise £ 9billion whose mortgage lending would be. Bank 's business to overseas, with its operations are reduced in 36 of the 54 countries have reduced or sold in the works. However, he gave no details on the expected loss of workers, union representatives irritation, as reports had suggested the loss of workers could amount to 20,000. "We are extremely frustrated by the lack of clarity about company 's restructuring proposals in detail without fixed jobs," said Unite's joint general secretary, Derek Simpson