An
expected writeoff
by the Royal Bank of Scotland (RBS) is further evidence that
acquisitions are an inexact science. It is believed that RBS will
announce a
£4 billion ($6.2 billion) writeoff
related to its acquisition of Citizens Financial. The writeoff will
almost entirely erase the company's 2014 profit. RBS has already sold 29
percent of Citizens Financial in a public offering, and plans to sell
more of the company. RBS purchased Citizens for $130 billion in 1988,
but the current market capitalization of Citizens is a much smaller
$13.7 billion.