Royal Bank of Scotland (RBS) will default

Troubled Royal Bank of Scotlad has more than $1.50 billion of dry bulk nonperforming loans in the shipping portfolio. According to Royal Bank of Scotlad, dry bulk has been mostly responsible for a near-trebling of the shipping loans and is considered to carry a 100% probability of default. Royal Bank of Scotlad more than 15% of its current exposure to shipping debt around $8.7 billion. Royal Bank of Scotlad is backed by United Kingdom government. Royal Bank of Scotlad attempted to sell all or parts of its shipping portfolio with help from investment bank Lazard. Royal Bank of Scotlad current exposure of $8.7 billion, about $7.8bn is attached to new building vessels and shipyards. $2.63 billion is attached to dry bulk and $l.66bn to each of tankers and containerships.