27 January 2014 Last updated at 17:48 GMT

RBS faces £8bn in full year losses

RBS may face full-year losses of up to £8bn, after the bank said it needed another £3.1bn for claims relating to the financial crisis.

Shares in the 80%-taxpayer owned bank dropped 3% on the news.

RBS boss Ross McEwan said: "The scale of the bad decisions during that period [the financial crisis] means that some problems are still just emerging."

RBS also said its executive committee would not receive a bonus for 2013

Mr McEwan has already said he would not take a bonus for 2013 and 2014.

The BBC learned earlier this month that general discussions about bonuses had taken place with shareholders, including UK Financial Investments, the body that manages the government's shareholding in the bank.

The controversy over bank bonuses flared up in Parliament earlier this month, with Labour demanding George Osborne block any attempt by RBS to pay bonuses of up to double its bankers' annual salary.

Surprise

RBS said on Monday the £3.1bn it plans to set aside would be used to settle claims relating to mortgage products, PPI claims and interest rate hedging.

It would allocate:

• £1.9bn to pay for fines and damages relating to mis-selling mortgage bonds in the US, as well as other penalties relating to market manipulation
• £650m of losses for mis-selling payment protection insurance (PPI)
• £500m of losses for compensating small businesses who were wrongly sold interest rate hedging products
• The bank also said there would be £4.5bn of further losses on bad loans and investments
• It suggested there could be unspecified further losses from selling off bad assets

The announcement of the new provisions came near the end of share dealing in London.

Ian Gordon, from Investec Securities, said the news was not entirely unexpected, but the amounts involved were: "Some of this is a pull forward of future bad news and some of this is additional.

"Most of the items aren't surprising, but the amounts are at or above the top end of expectations."

The cumulative amount set aside to cover the mis-selling of PPI, payment protection insurance, alone, is now £3.1bn, said RBS.

RBS, has also, in common with most of its rivals, been fined for fixing the key Libor interest rate and has suspended traders amid an investigation into alleged rigging of the foreign exchange markets.