The Royal Bank of Scotland Group plcNYSE
Tue, Sep. 27, 10:25 AM
- Banks could have and can still spare themselves a lot of pain by cooperating early and often, says Bill Baer, the DOJ's number three man.
- Baer is speaking about the crisis-era mortgage settlements, some of which ran into the tens of billions of dollars. Banks like Deutsche Bank (NYSE:DB) and RBS have yet to settle, and his message to the lenders seems to be: Submit quickly, and we'll throttle back the fines a bit.
- Deutsche of late has come under extreme pressure, in part, thanks to rumors the DOJ is seeking $14B to settle. Down another 3% earlier this morning, the stock has turned marginally higher.
Tue, Sep. 27, 9:18 AM
- "We are in uncharted territory if we don’t actually sell the assets through an asset sale this year," says Royal Bank of Scotland (NYSE:RBS) CEO Ross McEwan, warning the bank may not be able to unload its Williams & Glyn unit.
- His comments come after Santander last week reportedly dropped out of talks to buy the operation over objections to the price.
- To review, RBS must sell Williams & Glyn as a condition of its financial crisis bailout. Santander nearly purchased several years ago, but technical difficulties - the operation has 2M retail and business customers and 300 branches which needed to be separated from RBS's systems - scuttled the deal.
- McEwan says RBS is looking at "alternative options," but doesn't give details.
- The ADRs are lower by 2.6% premarket.
Wed, Sep. 21, 9:02 AM
- Unable to find a buyer for the unit amid a worsening downturn across the freight industry, Royal Bank of Scotland (NYSE:RBS) has started to wind down its global shipping finance business, reports Reuters.
- Industry sources say the bank for more than a year has been trying to sell the business, but didn't have interest at its hoped-for $3B valuation. The bank thus has decided an orderly wind-down over the next few years will bring it more value than a sale.
Tue, Sep. 20, 2:41 PM
- Price is the issue as Santander (NYSE:SAN) has pulled out of talks with Royal Bank of Scotland (NYSE:RBS) over a purchase of the British lender's Williams & Glyn unit, according to Bloomberg.
- Santander in 2010 had agreed to buy the operation - which today has 314 branches, £24.2B in assets, and 2M customers - but walked away from the deal in 2012 after too many delays in getting the closing done.
- The sale of Williams & Glyn is a key leg in RBS's hopes to be able to restart regular dividends, and management has indicated it's willing to accept a price less than the £1.3B in book value. RBS says there's been interest from a number of potential suitors and last month put an end to costly plans to IPO the bank.
Mon, Sep. 19, 9:08 AM
- Shares plunged late last week after word leaked the U.S. is seeking $14B over crisis-era MBS dealings, and they're extending those losses today as analysts crunch the bank's capital numbers.
- Any settlement above $6B would suggest a capital raise would be necessary just to pay the fine, says SocGen's Andrew Lim, noting Deutsche (NYSE:DB) has only about $12B in legal reserves and is still facing other probes.
- Macquarie's Piers Brown says the bank's capital position is "precariously thin" even without bad litigation outcomes, although a sale of Postbank could ease that pressure a bit.
- JPMorgan says a U.S. settlement in the $3B-$3.5B range would leave Deutsche will the necessary room to settle other cases without a capital raise. For each $1B over that range, litigation costs would erode capital by 24 basis points.
- Shares -0.8% premarket
- Down in concert with Deutsche on Friday on the $14B number was Royal Bank of Scotland (NYSE:RBS), which has also yet to settle U.S. mortgage charges. That stock has bounced 1.25% today.
Fri, Sep. 16, 1:00 PM
Fri, Sep. 16, 9:16 AM
Fri, Aug. 5, 1:00 PM
Fri, Aug. 5, 9:12 AM
Fri, Aug. 5, 6:31 AM
Fri, Aug. 5, 3:30 AM
- Royal Bank of Scotland (NYSE:RBS) racked up a more than a £2B loss in the first half after taking substantial charges for litigation and conduct.
- Allianz's (OTCQX:AZSEY) net profit fell by half in Q2, hit by higher damage claims, the sale its South Korean business and weaker investment performance.
- "Net outflows at Pimco have slowed, but we have not yet reached our goals," CEO Oliver Baete said in a statement.
Tue, Aug. 2, 1:11 PM
- Williams & Glyn comprises 314 Royal Bank of Scotland (NYSE:RBS) branches which the state-owned lender had promised to unload by the end of 2017 as part of its crisis-era bailout.
- It's tougher than it sounds, and RBS earlier this year said there was significant risk it couldn't get the job done by the deadline. Santander (NYSE:SAN) has been circling for some time, and a previous deal to purchase in 2012 fell through amid concerns about the bank's technology.
- Today, RBS has 5K staff working on the process of separating itself, and Williams & Glyn still doesn't have its own banking license.
- Source: Max Colchester in the WSJ
Mon, Aug. 1, 8:34 AM
- Shares of RBS (NYSE:RBS) are lower in early trading after the bank showed some signs of weakness in stress tests of European banks.
- Though RBS passed the test by the European Banking Authority, the fall of its capital ratio to 8% is in the spotlight.
- Barclays (NYSE:BCS) showed similar weakness, with an unexpected drop in its capital ratio to 7.3% under the stress test scenario.
- Italy’s Banca Monte dei Paschi di Siena was the only bank to be wiped out in the healthiness check.
- Full European bank stress test results (.pdf)
- RBS -1.76% premarket to $5.01.
Tue, Jul. 26, 9:03 AM
- In a letter to about 1.3M commercial customers, RBS warns it could be forced to start charging interest on deposits should the Bank of England take benchmark rates below zero.
- A number of central banks have already gone negative, and many expect the BoE to cut rates by 50 basis points to zero in early August.
- "We will consider any necessary action in the event of the Bank of England base rate falling below zero, but will do our utmost to protect our customers from any impacts,” says RBS.
Wed, Jul. 13, 5:34 PM
Mon, Jul. 11, 1:00 PM