Fri, Jan. 2, 4:45 AM
- Shares of Royal Bank of Scotland (NYSE:RBS) are down 2.4% in London following a report from The Times stating that the lender could face fines of more than £5B over its involvement in the sale of toxic mortgage-backed debt in the U.S.
- The figure is way above the £1.9B set aside by the bank to cover the potential fines.
Dec. 16, 2014, 4:19 AM
- Royal Bank of Scotland (NYSE:RBS) has agreed to sell £4.8B ($7.5B) of Irish property loans to an entity controlled by Cerberus for as much £1.1B ($1.7B).
- The sale is expected to be completed in the first quarter of 2015.
- U.K. banks are selling real estate loan books as they repair balance sheets damaged during the financial crisis after property prices crashed and loans soured.
Dec. 10, 2014, 6:49 AM
- Following the announcement for the sale of Coutts International, RBS (NYSE:RBS) is pulling the plug on its fixed-income trading business in Japan, slashing staff by more than 200 to about 30. The bank will retain only enough people to service remaining clients.
- The move is the latest restructuring as RBS seeks to improve profitability after six consecutive annual losses.
Dec. 8, 2014, 5:46 AM
- Royal Bank of Scotland (NYSE:RBS) has officially launched the sale of private bank Coutts International and has invited at least 10 potential suitors, including Credit Suisse (NYSE:CS), Julius Baer (OTCPK:JBAXY) and Malayan Banking Berhad (OTCPK:MLYBY) to participate in the auction.
- First-round bids are due before Christmas, with a sale expected to fetch about $1B.
- The sale of Coutts will help RBS, which is owned by the British government, to focus on domestic lending.
- Previously: RBS looking to offload Coutts International (Aug. 11 2014)
Dec. 1, 2014, 8:05 AM
- Continuing to pare down its businesses, Royal Bank of Scotland (NYSE:RBS) is closing down most of its European debt restructuring operations outside the U.K., reports Bloomberg.
- The bank in general is paring down non-core operations to focus on being a U.K. lender, but this particular unit has been under scrutiny for allegations RBS deliberately pushed vulnerable companies into bankruptcy in order to boost activity and profits.
Nov. 21, 2014, 11:01 AM
- Without the error, the bank's full-year CET1 ratio under the EBA's stress test's adverse scenario would have been only a barely-passing 5.7% (5.5% was the passing level) instead of the initially reported 6.7%.
- The bank's currently reported (as of Sept. 30) CET1 ratio of 10.8% is not affected.
- RBS -1.3% on a strongly green day for European markets.
Nov. 20, 2014, 6:40 AM
- British regulators fined Royal Bank of Scotland (NYSE:RBS) £56M ($88M) today over a technology failure that left millions of customers unable to access their accounts in 2012.
- The Financial Conduct Authority says that the IT failure had affected more than 6.5M RBS, NatWest, and Ulster Bank customers over the course of several weeks.
Nov. 14, 2014, 2:07 AM
- Royal Bank of Scotland (NYSE:RBS) is fully exiting its U.S. mortgage trading business after originally planning to reduce it by two-thirds.
- RBS said in May it would eliminate hundreds of jobs in the U.S. due to new legislation passed by the Fed in February.
- The new laws impose foreign banks with $50B or more in U.S. assets, to set up an intermediate holding company subject to the same capital, risk management and liquidity standards as U.S. banks.
Nov. 12, 2014, 2:24 AM
- Global regulators have fined six major banks, including UBS (NYSE:UBS), HSBC (NYSE:HSBC), Citigroup (NYSE:C), Royal Bank of Scotland (NYSE:RBS), JPMorgan (NYSE:JPM) and BofA (NYSE:BAC), a total of $4.3B over allegations of price fixing and manipulating benchmarks in the $5T-a-day foreign exchange market.
- The penalties were imposed by Britain's Financial Services Authority, the U.S. Commodity Futures Trading Commission and Swiss regulator FINMA.
- Barclays (NYSE:BCS) had been expected to be part of the settlement but the FCA said its investigation into the U.K. bank was continuing.
Oct. 31, 2014, 10:38 AM
- Royal Bank of Scotland (RBS +4.8%) is the latest to do so, today announcing the setting aside of $640M for potential settlements in the currency-rigging investigations.
- In total, seven major U.S. and European banks have boosted their legal reserves by $6.5B in October. Last night, Citigroup (C +0.4%) was forced to cut its Q3 earnings by $600M amid "rapidly-evolving" probes.
- UBS has put aside the most of any single bank this month - $1.9B. Next in line is Deutsche Bank (DB +0.7%) with $1.1B, and JPMorgan (JPM +1.3%) with $1B. None of the lenders disclosed exactly how much was specifically for foreign exchange, and none have yet been formally accused of wrongdoing.
- Barclays (BCS +5.6%) reserved $800M for FX-related settlements, and Credit Suisse (CS +0.5%) $400M.
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Oct. 31, 2014, 6:03 AM
- Customers of 154 branches have been told about closures, but RBS (NYSE:RBS) has not formally announced them.
- CEO Ross McEwan conceded today that 102 branches had already been shut. He insisted RBS doesn't have a formal branch reduction program, and wouldn't indicate how many would be closed next year against a backdrop of a 30% reduction in the number of branch transactions as customers increasingly adopt internet technology.
- Source: The Guardian
Oct. 31, 2014, 3:54 AM
- Following in the footsteps of Barclays and Citi, Royal Bank of Scotland (NYSE:RBS) says it had set aside £400M ($639M) to cover potential fines for manipulating currency markets.
- Another £100M will be set aside to compensate customers mis-sold loan insurance.
- Regarding Q3 earnings, the bank announced that it had made a pretax profit of £1.27B vs. a loss of 634M the year before.
- RBS also confirmed that it plans to keep its Ulster Bank business, following an upturn in the Irish economy.
Oct. 24, 2014, 2:44 AM
- Thirty-one banks are set to participate in the Fed's 2015 stress tests, which will see how they can withstand pressures such as a spike in oil prices, a rise in the U.S. unemployment rate or an increase in risky corporate loans. The capital plans are due in January.
- Among the bank's that failed last year's tests are Citigroup (NYSE:C), and the U.S. units of HSBC (NYSE:HSBC), Santander (NYSE:SAN) and RBS (NYSE:RBS).
- Deutsche Bank (NYSE:DB) will participate for the first time, and has already felt pressure from the NY Fed, which has told it in a private letter that its regulatory reports were "low quality, inaccurate and unreliable".
- This Sunday, the ECB will release results for stress tests of 130 eurozone banks amid a deteriorating economic outlook for the region.
Oct. 21, 2014, 8:49 AM
- At issue are charges of rigging Swiss franc Libor benchmark interest rates, and JPMorgan (NYSE:JPM), UBS, and Credit Suisse (NYSE:CS) will be collectively fined more than $115M, reports Reuters. Not being penalized is RBS thanks to its role as a whistleblower in the case.
- JPMorgan is reportedly set to receive the biggest fine at about $89M.
Oct. 10, 2014, 5:22 AM
- The U.K.'s Financial Services Authority has accused six banks, including JPMorgan (NYSE:JPM) and UBS (NYSE:UBS), of system and control failures in their forex operations, the FT reports.
- The allegations are part of the FSA's investigation into the possible manipulation of currency markets, which is one of a number of probes by authorities around the world.
- Last month, the U.K. regulator started settlement talks with the two banks, as well as with Barclays (NYSE:BCS), Citigroup (NYSE:C), HSBC (NYSE:HSBC) and RBS (NYSE:RBS). The discussions could lead to fines of £1.5B in total.
- By focusing on an inability to stop staff from engaging in misconduct rather than on actual manipulation, the FSA could help the banks limit the impact of lawsuits that have been filed in the U.S. over forex rigging.
Oct. 8, 2014, 2:18 AM
- Eighteen of the world's largest banks, ranging from Credit Suisse (NYSE:CS) to Goldman Sachs (NYSE:GS), have agreed to give up the right to "close out" deals on derivatives contracts if a financial institution runs into trouble, FT reports.
- The International Swaps and Derivatives Association is due to announce the agreement to change its “protocols”, which govern the $700T market, in the next few days. They will take effect from January 1, 2015.
- Related stocks: HSBC, JPM, OTC:BNPZY, DB, BCS, BAC, SAN, C, RBS,
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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