Seeking Alpha

RBS to speed up Citizen's sale, create £38B bad bank; stock tumbles

  • "We now have a shared vision for the bank that includes the board, our principal prudential regulator and the U.K. Government," says RBS CEO Ross McEwan, granting government wishes with the creation of an internal "bad bank" to hold £38B in sketchy assets, including bad loans from RBS' Ulster Bank unit. RBS plans to sell or let run off between 55-70% of the assets over the next two years.
  • The reorganization will cost the bank a writedown of £4B-£4.5B in Q4 and a short-term slip in its capital ratio.
  • Also at the behest of the government, management pledges to accelerate the sale of its U.S. unit - Citizens Financial. A partial listing is set to take place in 2014 H2 and a full exit by 2016. A buyer (TD Bank?) could theoretically step in ahead of an IPO.
  • Shares -6% in London action.
  • Previous: Q3 results.
From other sites
Comments (0)
Be the first to comment
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs