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The Royal Bank of Scotland Group plc (RBS)

  • 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. 28, 2013, 9:22 AM | Comment!
  • 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. 27, 2013, 2:55 PM | 7 Comments
  • 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. 22, 2013, 3:32 AM | 1 Comment
  • 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, 6:59 AM | Comment!
  • 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. 20, 2013, 2:11 AM | Comment!
  • 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. 14, 2013, 8:02 AM | Comment!
  • 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. 11, 2013, 2:07 AM | Comment!
  • 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. 9, 2013, 3:57 PM | Comment!
  • 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. 6, 2013, 3:23 AM | 11 Comments
  • Aug. 5, 2013, 2:25 PM
    • SocGen has cut RBS (RBS -2%) shares to Sell following the bank's Friday 1H report and CEO announcement.
    • Shares -10% YTD.
    | Aug. 5, 2013, 2:25 PM | Comment!
  • Aug. 2, 2013, 2:46 AM
    • As expected, RBS (RBS) names Ross McEwan, the head of its retail bank, as CEO to replace the outgoing Stephen Hester.
    • The New Zealander, who will start on October 1, will receive a base salary of £1M ($1.5M), although he will forgo his bonus through 2014.
    • H1 net profit £535M vs a loss of £2.03B a year earlier.
    • Pretax profit £1.4B vs a loss of £1.7B.
    • Revenue drops to £10.61B from £11.69B, excluding the value of own credit and other one-offs.
    • Takes a provision of £185M for the wrongful selling of payment protection insurance, and of £385M for undisclosed legal and regulatory purposes. (PR)
    | Aug. 2, 2013, 2:46 AM | 1 Comment
  • Jul. 30, 2013, 11:31 AM
    • An affiliate of MF Global sues, alleging 11 banks engaged in anticompetitive practices to keep the company out of the lucrative clearing business for swaps
    • It's the third U.S.lawsuit making such claims (previous), and the EU has also filed suit
    • Those charged: BAC, BCS, C, CS, DB, GS, MS, RBS, UBS
    • JPMorgan (JPM) is named as a co-conspirator, while the ISDA and Markit are named separately as defendants
    • One source suggests the 3 U.S. claims could be consolidated into one case
    | Jul. 30, 2013, 11:31 AM | 3 Comments
  • Jul. 24, 2013, 6:57 AM
    BlackRock's (BLK) top man in Asia - Mark McCombe - has turned down the top job at RBS which is searching for a CEO after Stephen Hester abruptly resigned last month. RBS is undertaking the search just as the U.K. government begins the process of unloading its stake in the bank.
    | Jul. 24, 2013, 6:57 AM | Comment!
  • Jul. 22, 2013, 11:33 AM
    Royal Bank of Scotland (RBS +0.5%) faces a lawsuit from its former head of emerging markets rates claiming he wrongly had to forfeit his bonus after being taking a job at a hedge fund (after he was fired). It's a relatively small amount of money ($2.5M), but it's an important case as the bank has plans for more widespread clawbacks in conjunction with the rate-rigging scandal.
    | Jul. 22, 2013, 11:33 AM | Comment!
  • Jul. 19, 2013, 6:50 AM
    The U.K. government has selected JPMorgan to advise it on the possible sale of its stakes in RBS and Lloyds (LYG).
    | Jul. 19, 2013, 6:50 AM | Comment!
  • Jul. 12, 2013, 3:07 PM
    The usual suspects in the banking fraternity are the subject of another class-action suit over price-fixing in the CDS market, with the plaintiffs in this case being 4 Danish pension funds. The case was filed in federal court in Illinois, the same locale as a similar complaint logged in May by a labor union. Across the pond, the EU this month filed their own charges. Banks named: BAC, BCS, C, CS, DB, GS, HBC, JPM, MS, RBS, UBS, BNPQY.PK.
    | Jul. 12, 2013, 3:07 PM | 5 Comments
Company Description
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.
Sector: Financial