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Sep. 27, 2013, 10:42 AM
- A consortium led by Corsair Capital is paying £600M upfront for a majority stake in the 314 bank branches - codenamed "Project Rainbow." RBS will retain a significant share in the business, which will carry the revived name of Willams & Glyn. The buyers could pay up to an additional £200M depending on performance over the next 18 months.
- The sale of the branches has been a requirement of the European Commission as part of RBS' 2008 bailout. Santander U.K. had been the original buyer, but dropped out last year.
Sep. 25, 2013, 4:36 AM
- The EU's top 42 banks need a further €70.4B ($95B) of capital to comply with Basel III core-capital regulations, the European Banking Authority estimates.
- By the end of last year, the combined gap had been cut by €29.1B compared with six months earlier.
- The rules, which are due to come into effect in 2019, require that banks hold a core-capital buffer of at least 7% of their assets on a risk-weighted basis.
- Banks will also need to maintain a leverage ratio of 3% of their total non risk-weighted assets from 2018. The shortfall for this requirement is €106.6B.
- Banks include: BCS, HBC, DB, LYG, RBS, SAN
- ETFs: AXFN, KBWX, IPF, IXG, EUFN
Sep. 20, 2013, 4:30 AM
- RBS (RBS) has raised £630M ($1B) by placing a 20% holding in Direct Line on the market, leaving the bank with a 28.5% stake in the U.K. insurer.
- RBS has been selling down its ownership of Direct Line as part of the conditions of its state bailout in 2008. The bank said it's on course to totally exit the insurer by the end of 2014, as planned.
- RBS intends to use the proceeds from the sale for general corporate purposes. Its shares are -1.1% in London. (PR)
Sep. 16, 2013, 2:48 AM
- Starting today, tens of millions of U.K. consumers will be able to seamlessly switch banks within seven working days, down from 19-30 days until now.
- Banks have spent £750M ($1.2B) in preparing for the introduction of the new rules, in which they have to ease the process for customers to leave them. The project is being closely watched in the U.S., where banks have no obligations to assist customers if they want to switch banks, and could serve as a template for similar programs in America and elsewhere.
- The U.K. banks affected include HSBC (HBC), RBS (RBS), Lloyds (LYG) and Barclays (BCS), which hold 75% of of the market of 76M checking accounts.
Sep. 10, 2013, 12:51 PM
- The Financial Supervisory Service has launched an investigation into whether Goldman Sachs (GS +3.3%), Credit Suisse (CS +2%), and Royal Bank of Scotland (RBS +3.8%) violated local laws when they sold foreign-issued bonds to Korean investors directly from overseas offices, reports the WSJ. Korean law says such paper can only be sold in-country from banks' local branches.
- A source says the agency is nearly finished gathering information from Goldman and is set to move on to Credit Suisse. Any decision on what action to take will be made after information has been gathered from all three.
- Searching for yield just like the rest of us, Korean institutional investors have begun to buy structured fixed-income products from abroad in recent years, with Credit Suisse particularly active in selling the products.
Sep. 9, 2013, 3:35 PM
- "Even if you wanted to do something, now would not be the time to do anything," RBS Group Finance Director Bruce Van Saun tells the Barclays Financial Services Conference (presentation slides). Van Saun - who is set to be the next head of RBS' U.S. subsidiary, Citizens FInancial Group - says the current M&A market is too hostile for to consider selling off the unit.
- He reiterates RBS' previous guidance of a late 2014 or early 2015 sale. "The list of potential buyers today is quite thin ... We're just focused on getting the performance up."
Aug. 28, 2013, 9:22 AM
- Breaking in a big way with BOE policy under his predecessor, Mark Carney says those banks meeting the minimum 7% capital threshold will be able to reduce the level of required liquid asset holdings. He estimates this would lower total required holdings by £90B once all eight major banks get to 7%.
- The Q&A is beginning now.
- Earlier from Carney.
- BCS +2.5%, RBS +1.7%, LYG +1.8%, HBC -1% premarket.
Aug. 27, 2013, 2:55 PM
- UBS last month agreed to a precedent-setting $885M settlement, or more than 90% of expected losses on MBS it packaged. The notional value of paper sold by JPMorgan (JPM) is 5x larger than that of UBS, leading to a figure close to the $6B range. JPMorgan - negotiating for a lower amount - says claims against other banks allege fraud, making their offenses more serious.
- $6B would be the high-end of what JPMorgan last year figured was its liability in the case (the suit is over $33B in MBS). The House of Dimon could await its day in court, but nearly all initial rulings have gone against the banks thus far. A settlement before the summer 2014 trial date still looks probable.
- Watching closely will be Bank of America (BAC) and RBS, both of which have heavy exposure to the FHFA suits and have yet to settle. Morgan Stanley estimates a worst-case scenario of $3.6B for BofA vs. a base case of $2B.
Aug. 22, 2013, 3:32 AM
- The U.K.'s Financial Conduct Authority has reached a settlement of up to £1.3B ($2.04B) with banks, credit-card issuers and insurer CPP to compensate customers for mis-sold credit-card insurance.
- The firms involved include Lloyds (LYG), Barclays (BCS), HSBC (HBC), Morgan Stanley (MS), Santander (SAN), Capital One (COF) and RBS (RBS).
- The deal is dependent on customer and court approval.
- The agreement adds to the billions of pounds in fines that banks have paid for mis-selling other financial products. (PR)
Aug. 20, 2013, 6:59 AM
- As expected, British consortium W&G Investments has bid up to £1.5B ($2.35B) to acquire 316 bank branches that RBS (RBS) is selling as part of the conditions of its 2008 bailout.
- The offer is slightly below the £1.55B that RBS values the outlets at.
- RBS has received two other offers and is considering an IPO for the branches, and is expected to make a decision in September.
Aug. 20, 2013, 2:11 AM
- W&G Investments, a consortium of investors and pension funds, today intends to bid up to £1.5B to acquire 316 bank branches from RBS (RBS), with the offer to comprise £1.1B up front and £400M depending on performance.
- W&G is also set to raise £15M in an IPO, money the group will use to fund its due diligence of RBS.
- The bank is selling the outlets as part of the conditions for its £45.5B taxpayer bailout in 2008 and 2009. The company has until 2014 to divest the branches unless it receives an extension from the EU.
- RBS has received two rival offers, including one from a consortium backed by the Church of England and another involving AnaCap and Blackstone (BX). The bank is also mulling an IPO of the branches.
- W&G's offer will come after Santander dropped a £1.7B offer in October last year.
Aug. 14, 2013, 8:02 AM
- The costs of the so-called "bad bank split" for RBS would likely exceed the benefits, according to Fitch, citing the complications in actually doing the split, and the bank's H1 profits and increasingly robust balance sheet.
- The most likely outcome, says Fitch, is for the bank to continue with planned capital actions - deleverage further, sell some U.S. operations, reduce its markets business. The greatest risk facing RBS is litigation relating to its legacy business and this would be difficult to remove with a bad bank split.
Aug. 11, 2013, 2:07 AM
- U.K. Business Secretary Vince Cable believes the state will retain its 81% stake in RBS (RBS) for another five years, possibly increasing the chances that the company will be split up into good and bad banks prior to any sale.
- Comments from Cable, who's known as a bit of a loose cannon in the ruling coalition, stand in contrast to the views of Prime Minister David Cameron, who wants to sell the holding "as soon as possible." RBS Chairman Philip Hampton has said the re-privatization could begin in 2014.
Aug. 9, 2013, 3:57 PM
- RBS (RBS +0.8%) says it will sell its business banking, credit cards business and loan portfolio assets in India to a local bank for an undisclosed sum, as part of its strategy of shedding non-core assets globally.
- Under pressure to shrink its global balance sheet, RBS has been trying to sell these assets for more than two years.
Aug. 6, 2013, 3:23 AM
- HSBC (HBC) faces having to pay $1.6B in a lawsuit from the Federal Housing Finance Agency over soured mortgage bonds that the bank sold to Fannie Mae (FNMA.OB) and Freddie Mac (FMCC.OB). The bank made the disclosure yesterday.
- The figure is well above the $900M that analysts at Credit Suisse had estimated.
- In total the FHFA has sued 18 banks over mortgage bonds; should HSBC's calculations for its liabilities be applied to some of the defendants with the largest exposure, including Bank of America (BAC), JPMorgan (JPM) and RBS (RBS), they would have to pay over $7B each. Should these banks make payments in proportion with a recent UBS deal, the bill would above $4B.
Aug. 5, 2013, 2:25 PM
Royal Bank of Scotland Group (The) PLC is an international banking and financial services company. The Company through its subsidiaries provides banking products and services to personal, commercial and large corporate and institutional customers.
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