Thu, Oct. 1, 5:11 PM
- JPMorgan Chase (NYSE:JPM) will pay almost a third of a $1.86B settlement to resolve accusations that a dozen big banks conspired to limit competition in the credit default swaps market, Bloomberg reports.
- JPM reportedly will pay $595M, followed by Morgan Stanley (NYSE:MS) with $230M, Barclays (NYSE:BCS) at $175M, Goldman Sachs (NYSE:GS) at $164M, Credit Suisse (NYSE:CS) at $160M and Deutsche Bank (NYSE:DB) at $120M; BofA (NYSE:BAC), BNP Paribas (OTC:BNPZY), UBS, Citigroup (NYSE:C), Royal Bank of Scotland (NYSE:RBS) and HSBC would pay less than $100M each.
- The deal would avert a trial and end years of litigation by hedge funds, pension funds, university endowments, small banks and other investors, who sued as a group.
Tue, Sep. 15, 9:05 AM
- Royal Bank of Scotland (NYSE:RBS) is unlikely to pay a dividend, Berenberg says, until it can show regulators two years of profit -- which means until at least 2018, a year later than expected.
- The bank had been promising to return excess capital from divestments as soon as Q1 2017.
- It's got to pass English stress tests first. And settle with U.S. regulators, say the analysts, who have a Sell on RBS. "We would be surprised if the regulator did allow the ‘excess’ capital to be returned before RBS had been profitable for two years."
- The Bank of England is set to publish its look at British lenders' health in December.
- RBS shares are down 17.1% YTD.
Fri, Aug. 14, 2:07 AM
- Five more banks have agreed to settle U.S. investor lawsuits tied to a global currency-rigging scandal, which claimed the institutions conspired to manipulate the $5.3T-a-day foreign-exchange market.
- HSBC (NYSE:HSBC), Barclays (NYSE:BCS), Goldman Sachs (NYSE:GS), BNP Paribas (OTC:BNPZY) and Royal Bank of Scotland (NYSE:RBS) now join a list of nine firms which previously settled the class actions, bringing the total amount investors have recovered to $2B.
Thu, Aug. 13, 9:01 AM
- Royal Bank of Scotland (NYSE:RBS) Global Head of Trading Michael Lyublinsky has departed to lead fixed-income in the Americas for Brevan Howard, reports Bloomberg.
- The $27B AUM hedge fund firm has been shuffling things around after posting its first annual loss last year, and also hired RBS's former head of securitized debt earlier this month.
Mon, Aug. 3, 4:47 PM
- The U.K. government today began the sale of a £2B ($3.1B) stake in Royal Bank of Scotland (NYSE:RBS), seven years after the bailout of the bank at the height of the financial crisis.
- The government said it would sell ~600M shares, representing 5.2% of the bank, at 330 pence/share in a quick sale to institutional investors after the close in London.
- The selloff is being made at a loss, as the shares were bought at an average price of 502 pence; the government will still own a 73.2% stake in the first sale, with the intent of selling at least three-quarters of the stake in the next five years.
Thu, Jul. 30, 10:17 AM
- Q2 net profit of £293M was up 27% from a year ago. Underlying operating profit - which excludes restructuring costs and conduct fines - of £1.81B slipped from £1.95B as the bank continues to pull back from investment banking.
- RBS initially jumped higher in London action, but shares are now lower by 2.7%.
- The mortgage business was a strong spot, with gross new lending up 43% for the quarter. The bank's capital ratio of 12.3% rose from 11.5% a quarter earlier, and CFO Ewen Stevenson promises the chance of a dividend once the ratio tops 13%. The first quarter of 2017 seems the earliest to expect a payout, he says.
- Source: FT
Thu, Jul. 30, 9:52 AM
Wed, Jul. 29, 6:21 AM
- In a larger-than-expected offering, the Royal Bank of Scotland (NYSE:RBS) has sold $2.2B in shares of the Citizens Financial Group (NYSE:CFG), as it further reduces its stake in the lender.
- "The sale of Citizens...will help us to create a simpler, stronger and more efficient U.K.-focused bank that can better serve the needs of its customers," said CEO Ross McEwan.
- After the sale and a buyback, RBS will hold a 23.4% stake in the U.S. retail bank, down from 40.8%.
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)
RBS vs. ETF Alternatives
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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