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Sunday, Oct 20
U.K. plans to split RBS into good and bad banks
- The British government intends to break RBS (RBS) up into a "good bank" and a "bad bank" and will give the go-ahead in the next weeks, Finance Minister George Osborne has said.
- However, the government won't sell its 81% stake in RBS until after the next election, although it is looking to sell more shares in Lloyds (LYG), this time to retail investors.
- Blackrock, which was brought in as an adviser, has identified £50-60B of toxic assets at RBS that would be put into a bad bank.