Thu, Jul. 23, 2:56 PM
- Continuing to shed legacy assets, Royal Bank of Scotland (RBS -2.8%) agrees to the sale a £1.14B pound loan portfolio to an entity funded by Deutsche Bank and funds of Apollo Global (NYSE:APO) for £400M in cash. The portfolio generated a loss of £70M last year, and RBS had it valued on its books at £376M, thus generating a £24M profit on the sale.
- The other £549M portfolio sold to Cerberus Capital for £225M. It was on RBS's books valued at £223M.
Wed, Jul. 8, 8:40 AM
- Unveiling the summer budget, U.K. Chancellor Osborne says the government will gradually phase out the bank levy over the next six years, replacing it with a new 8% surcharge on profits. The difference? The new charge applies only to U.K. assets, while the bank levy applied to global balance sheets.
- Osborne may have made the change in response to threats from banks to leave the U.K. because of the levy (which Osborne increased 50% in the last budget).
- The FTSE 350 banking index is higher by 1.6% following the news. Watching with interest: HSBC, RBS, Barclays (NYSE:BCS), Lloyds (NYSE:LYG), Standard Chartered (OTCPK:SCBFF).
Mon, Jul. 6, 11:18 AM
- If true, the news means the government envisions selling shares at a faster pace than markets expect, reports Reuters, with a possible first sale in September.
- It also means the U.K. will almost certainly take a sizable loss on at least its initial sales.
- The U.K. put £45.8B into RBS during the financial crisis, leaving it with a 78% stake in the bank now worth about £32B.
Fri, Jul. 3, 3:39 AM
- According to documents filed in a U.S. court, Royal Bank of Scotland (NYSE:RBS) may need to pay $13B to settle claims it misled investors over the sale of about $32B in mortgage-backed debt.
- The size of the settlement could also make it difficult for Britain's finance ministry to proceed with its plan to start selling the government's 78% stake in the bank in coming months.
- Related: Bloomberg: RBS mortgage tab could hit $4.5B (May. 27 2015)
- Related: Court says Nomura, RBS misled investors (May. 12 2015)
Fri, Jun. 19, 7:51 AM
- Goldman Sachs (NYSE:GS) has been hired to replace JPMorgan (NYSE:JPM) as the U.K. government's adviser for the privatization of Royal Bank of Scotland (NYSE:RBS), reports Bloomberg.
- JPMorgan was hired in 2013 with the expectation that the role would come up for review from time to time.
- The government owns about 79% of RBS.
- Goldman's winning of the business comes as the bank bids for more than $20B in mortgages being sold by U.K. Asset Resolution, Ltd. JPMorgan bought about $4B in mortgages from the operation late last year.
Wed, Jun. 10, 4:32 PM
- Chancellor George Osborne uses the occasion of his annual Mansion House speech to say the government will begin unloading its stake in Royal Bank of Scotland (NYSE:RBS) - a highly-anticipated and mostly symbolic move to show how the country has moved past the financial crisis.
- The government's stake is currently worth £32.1B.
- Osborne says shares will be sold even at a loss (which seems certain for at least the initial sales). Wednesday's close of £3.55 stands against the average price paid during the bailout of £5.
- The government's plan has gotten the blessing of the Bank of England and independent adviser Rothschild.
Tue, Jun. 9, 1:09 PM
- Citing the reduced prospect of government support in a times of stress, S&P cuts the credit ratings of Deutsche Bank (DB -2.4%), Royal Bank of Scotland (RBS +0.7%), and Commerzbank (OTCPK:CRZBY +0.1%) to BBB+, three notches above junk territory. Barclays (BCS +0.2%) is downgraded to A-, one notch above the other three.
- For RBS, Barclays, and Commerzbank, it was a one-notch downgrade. For Deutshce, two notches.
- Source: WSJ
Tue, Jun. 2, 3:55 AM
- Following the U.K. general election in May, British Chancellor George Osborne is expected to lay out plans for privatizing Royal Bank of Scotland (NYSE:RBS) in next week's Mansion House speech, sources told FT.
- Yesterday, the U.K. Treasury committed to selling another chunk of Lloyds (which was also bailed out during the financial crisis) over the next 12 months.
- The British government currently owns 80% of RBS and an 18.99% stake in Lloyds.
- Previously: U.K. extends plan to cut Lloyds stake (Jun. 01 2015)
- Previously: British Chancellor may sell RBS shares at a loss (May. 11 2015)
Fri, May 29, 7:22 AM
- The U.K. government is interested in assisting smaller lenders challenge the dominance of the country's four largest banks, and an antitrust review of Royal Bank of Scotland (NYSE:RBS) may result in the bank having to give more assets to its Williams & Glyn business, which has 307 branches, reports Bloomberg.
- The review and possible results sound a lot like what happened with Lloyds two years ago when it was forced to give more assets to its TSB Banking Group before putting it on the block.
- RBS plans to sell shares in the Glyn operation in Q4 of next year.
- The UK. Competition and Markets Authority will formally publish its report in July.
Wed, May 27, 8:12 AM
- Royal Bank of Scotland (NYSE:RBS) is one of the few lenders who have yet to settle with the FHFA over MBS sold to the GSEs during the housing boom. Bloomberg Intelligence analyst Elliot Stein figures the final settlement will be closer to the $4B JPMorgan paid rather than Deutsche Bank's $1.9B deal.
- RBS is seeking to have the case dismissed, but good luck with that. Both it and Nomura lost a separate FHFA case earlier this month.
Thu, May 21, 7:58 AM
- Just having been hit with $3B over currency-rigging charges yesterday, Barclays (NYSE:BCS) and RBS will have to set aside another $11B within two years, according to JPMorgan.
- For RBS, it still faces billions in potential MBS costs, and Barclays isn't finished with forex-related fines. Both, says JPMorgan, will need to top up reserves to compensate customers for payment protection insurance they didn't want or need.
Wed, May 20, 10:10 AM
- Those facing criminal charges from the DOJ are UBS (already reported, the stock is up 3.4% today), Barclays (BCS +2.5%), Citigroup (C -0.5%), JPMorgan (JPM -0.4%), and RBS (RBS +1.6%).
- Bank of America (BAC -0.4%) faces a $205M fine by the Fed, but no criminal charges. Fines by the Fed for the other banks range from $274M-$342M.
- There are fines from other regulators as well, with the total for all the banks summing to $5.8B. Barclays looks to be hit the hardest on that front, with total monetary penalties of $2.4B.
Thu, May 14, 7:55 AM
- "Guilty" is the new "neither admitting nor denying the charges."
- Yes, the DOJ looks set to extract guilty pleas on felony charges from five big banks over forex rigging, but life will go on for the lenders without much of a hiccup (after paying billions in fines), according to DealBook.
- Barclays (NYSE:BCS), JPMorgan (NYSE:JPM), Citigroup (NYSE:C), RBS, and UBS are the five whose holding companies will plead guilty, according to the report.
- While the guilty pleas are a nice feather in the caps of prosecutors, they seem to me more symbol than substance - too harsh a penalty would imperil banking operations, and behind the scenes, bank lawyers are working the phones with regulators to assure the felons won't be barred from certain businesses.
Wed, May 13, 3:07 PM
- The British government still holds and 80% stake in Royal Bank of Scotland (NYSE:RBS) and a 20% stake in Lloyds (NYSE:LYG). JPMorgan had previously been tapped to advise on the re-privatization, but the U.K. is now putting the business back up for bid (not a totally unexpected move).
- The U.K.'s RBS stake is currently worth more than $50B.
- A slate of 18 banks, including JPMorgan, would be eligible for the advisory job - a pretty sizable one given the government's stake in RBS alone is worth more than $50B.
- Source: WSJ
Wed, May 13, 2:23 AM
- Philippe Selendy, a lawyer for the FHFA, expects Nomura (NYSE:NMR) and Royal Bank of Scotland's (NYSE:RBS) shoddy MBS conduct before the financial crisis to result in a judgment exceeding $805M.
- Despite the hefty amount, the two would likely receive the mortgage bonds in exchange, which are estimated to be were worth $434M-$479M.
- A proposed judgment is expected to be filed in court Friday.
- Previously: Court says Nomura, RBS misled investors (May. 12 2015)
Tue, May 12, 12:37 PM
- "There would be a massive impact across London if a bank the size of HSBC left," says Davide Serra, founder of hedge fund Algebris, and who has advised the government on its holdings of Lloyds (NYSE:LYG) and RBS. "We are talking 10% of London's GDP, if you factor things like personnel moving."
- What has HSBC along with Standard Chartered (OTCPK:SCBFF) considering pulling their HQ out of the U.K. is the country's bank levy - an annual tax on U.K. banks of 0.21% of assets (foreign banks pay that amount only on their U.K. liabilities). Serra: “The bank levy is totally unsustainable. If the U.K. takes 25% of U.K. banks’ profitability, no bank will want to be domiciled here. It is a total disaster for the U.K.”
- Algebris' long/short equity strategy is ahead 27% YTD, while its credit strategy is up 5.14%. Also among its bank holdings is the equity and credit of Lloyds, and Serra calls CEO Hora Osorio one of the bet bank chiefs in Europe.
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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