For holders only - reasons to hold?, page-14

But you’ve calculated that loss based on the market cap, which doesn’t impact the bank’s loss. Market cap is the theoretical amount that can be returned to shareholders after all debts have been paid in full, it indicates the shareholders loss. Because of the way capital structures work in companies, it’s possible for the bank’s to suffer no losses and the shareholders to lose their entire investment.

The bank’s are probably sitting on a small loss at the moment, because RFG’s credit risk has increased and therefore they’ll have factored in the risk of default, but it would be nowhere near 150m. If the bank’s had lost that much the share price would be nil.