Citizens Bank parent RBS to raise $24 billion

The parent of Citizens Bank, Royal Bank of Scotland, said Tuesday it plans to raise some $24 billion from shareholders to bolster capital hurt by write-downs and acquisitions.

RBS said deterioration in global credit markets prompted the bank to ask shareholders to approve the big-ticket rights issue. The bank has been hurt by the acquisition of assets from ABN Amro Holdings NV and the decline in the value of mortgage-related assets.

The rights issue proposes offering 11 new shares for every 18 existing shares at a 46 percent discount to RBS' closing stock price on Monday.

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Meanwhile, RBS said it would sell some smaller assets, but not its U.S. operations, according to published reports.