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The UK's Royal Bank of Scotland has posted a net loss of $34.4bn for 2008 – the biggest ever loss in British corporate history.
Announcing the news on Thursday, the bank unveiled plans to cut $3.56bn in costs as part of a massive restructuring programme, which could see up to 20,000 jobs cut.
It also emerged that Fred Goodwin, the bank's former chief executive who was largely blamed for leading it into disaster, has begun drawing a pension worth $713,000 a year, despite being only 50-years-old.
Stephen Hester, Goodwin's successor, said the "key building blocks for RBS's recovery are now in place," but added that did not mean it would bounce back successfully.
RBS has confirmed that it will offload so-called toxic assets into a government insurance programme.
The bank has already been part-nationalised under government bailout packages worth almost $30bn.
The UK government is set to unveil a scheme that could insure more than $700bn worth of banks' risky assets, potentially giving it a 95 per cent stake in RBS.
The scheme is designed to restore confidence into the banking system and get credit flowing again into the recession-hit British economy.
RBS's huge loss contrasts with the $10.5bn profit the bank made in 2007