real-time news and commentary for investors
Sunday, Oct 27
U.K. government to stop short of RBS break-up
- U.K. Finance Minister George Osborne reportedly plans to tell state-owned RBS (RBS) to create an internal "bad" bank of £40B of toxic assets rather than break itself up.
- The strategy would negate the need for a vote of independent shareholders, some of which oppose a full break-up into "good" and "bad" banks.
- Osborne may also order RBS to float its U.S. retail bank, Citizens, earlier than a previous target date of 2015, while the international division of RBS's wealth management firm Coutts could also be sold.
- The bank could announce the shakeup when it releases quarterly results on Friday.