Housing Pain Continues......

what RBS has to say that we are not out of woods yet and more pain down the road with final sell wave this summer when option ARM's reset: Housing ARMS, So why is market discounting

Royal Bank of Scotland, the biggest British banking casualty of the financial crisis, warned on Friday it expects bad loans to mount during the rest of the year as the global economy remains mired in recession.The warning came as RBS revealed that it had a pre-tax loss of £44m for the first three months of the year as its bad loans and credit writedowns hit £4.9bn.Chief executive Stephen Hester, who was parachuted in as chief executive atthe peak of the banking crisis in the autumn, said: "We remain cautious and continue to plan and manage our businesses in the full expectation that both 2009 and 2010 will be very tough years for RBS."

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