Hi Doberman (and everyone else - did you miss me!)
I've kept quiet for the last month because I haven't had a clue what is going on in these markets - you question about RBS is one I can help you with though!
RBS, or anyone else doesn't need to go to zero before they are bust. Indeed, shares generally get suspended before they get to zero but the company either is or or isn't far from being bust when its shares get suspended.
A bank generally ceases trading when it becomes clear that it can't meet its liabilities as they fall due. Its too big a subject to go into here, but banks generally don't have enough money on hand to pay out all the depositors if they all come in and want their money bank - think of the queues outside Northern Rock.
There are lots of rumours flying around about RBS and other UK banks, who knows which ones are in trouble or not at the moment. I guess the question you need to ask yourself is whether the government will allow a major retail bank like RBS to go bust, given the consequences for the economy. Even if it did, so long as you have less than £50,000 in there then your deposit is guaranteed by the government, so you shouldn't havea loss.
Hope that helps - hi to everyone else. Hope you've all been fairing well in this volatility. It was all too scary for me!
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