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The Royal Bank of Scotland Group plc (RBS)

  • Tue, Apr. 21, 1:52 AM
    • The U.S. Department of Justice is now pushing for five banks, including JPMorgan (NYSE:JPM), Barclays (NYSE:BCS), Citigroup (NYSE:C), RBS (NYSE:RBS) and UBS (NYSE:UBS), to reach a joint mega settlement to allegations they manipulated the foreign exchange markets.
    • The deal would see some institutions pay about $1B each and is scheduled for mid-May, FT reports.
    • Last November, the banks (except Barclays) agreed to pay $4.3B to authorities in the U.S., U.K. and Switzerland in the first settlements announced in the forex investigation, although the DOJ was not included on that ticket.
  • Wed, Apr. 15, 3:19 PM
    • A federal appeals court rejects claims from investors in the ADS's of Royal Bank of Scotland (RBS +0.8%) that the bank defrauded them by lowballing its subprime exposure ahead of the financial crisis.
    • Dissenting from the 2-1 opinion, one judge says the bank materially misled investors by falsely denying on April 22, 2008 that the U.K.'s FSA had ordered a capital raise.
    • Today's decision upholds a ruling previously made by a U.S. District judge.
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  • Mon, Apr. 13, 1:31 PM
    • Part of a continuing plan for the state-backed lender to return to being just a U.K. retail and commercial bank, Royal Bank of Scotland (RBS +1.4%) hired PwC to advise on a sale of the business, which has some €20B in AUM.
    • One of the operation's largest clients is the European subsidiary of Industrial and Commercial Bank of China, reports the FT.
    • Previously: Official: UBP to buy RBS's Coutts International (March 27)
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  • Wed, Apr. 1, 10:45 AM
    • Continuing its plan to return to its roots as a U.K. retail lender, Royal Bank of Scotland (RBS +1.2%) sells $800M of loans made to UAE companies to Commercial Bank of Dubai as part of a broader exit from the Middle East and Africa.
    • Source: Bloomberg
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  • Mon, Mar. 30, 10:00 AM
    • After just a couple of months as executive chairman of the corporate and institutional bank at Royal Bank of Scotland (RBS +0.3%), Rory Cullinan will leave the company at the end of April.
    • Cullinan is also in charge of the RBS's "bad bank" - named Capital Resolution - responsible for selling or closing noncore businesses and other unwanted assets. Those duties included overseeing the spinoff of Citizens Financial Group last year.
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  • Mon, Mar. 30, 9:17 AM
    • Unlike last year's stress test which focused on a U.K. property bust, this year's version deals more with how banks would handle a global economic slowdown and market tumble, suggesting lenders like HSBC, Standard Chartered (OTCPK:SCBFF), and Barclays (NYSE:BCS) could have a tougher go of it.
    • The seven lenders tested will have to maintain a CET 1 ratio of 4.5% and a leverage ratio of 3%.
    • Also to tested: RBS, Lloyds (NYSE:LYG), Santander U.K. (NYSE:SAN), and Nationwide Building Society.
    • Results are due in December.
    • Sources: Bank of England, WSJ
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  • Mon, Mar. 30, 4:09 AM
    • Top European and U.S. banks axed 59,000 jobs last year as they restructured, cut costs and moved further into digital banking, Reuters reports.
    • The figure brings the total number of jobs lost across 24 banks in the last two years to 160,000.
    • Notables: Barclays (NYSE:BCS) shed 7,300 jobs last year due to a three-year plan to cut 19,000 staff; RBS (NYSE:RBS) slashed 10,000 employees as it sold overseas businesses and trimmed its investment bank further; JPMorgan (NYSE:JPM) and BofA (NYSE:BAC) also made substantial job cuts as they worked through troubled mortgages and refinanced loans at lower rates.
  • Fri, Mar. 27, 4:39 AM
    • Swiss private bank Union Bancaire Privee has agreed to buy Royal Bank of Scotland's (NYSE:RBS) international private banking arm Coutts International.
    • "This acquisition confirms our commitment in further developing our wealth management business and represents a significant milestone in our growth strategy," said UBP's chief executive.
    • While both parties did not disclose a price, the FT suggested on Thursday that the deal would fetch $600M-$800M.
    • Previously: RBS sale of Coutts International getting near (Mar. 26 2015)
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  • Thu, Mar. 26, 3:00 PM
    • Royal Bank of Scotland (RBS -0.5%) is soon set to announce the sale of its international wealth management unit Coutts to Switzerland's Union Bancaire Privee, reports the WSJ.
    • Analysts figure the sale price will be in the area of $600M.
    • The move is in keeping with RBS's (80% state-owned) to focus its energies and capital on being a U.K. retail bank.
    • Previously: RBS narrows field of bidders for private-banking business (March 13)
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  • Thu, Mar. 26, 2:28 AM
    • Royal Bank of Scotland (NYSE:RBS) has increased the value of shares it's selling in Citizens Financial (NYSE:CFG) to as much as $3.7B after receiving stronger demand from investors to own a stake in its recently listed U.S. subsidiary.
    • RBS agreed to sell a further 135M shares at $23.75 per share — plus a potential 20.25M overallotment option, reducing its stake in Citizens to 41.9% if the overallotment is exercised.
    • RBS also aims to carry out another share sale later this year to slash its stake in Citizens below a third. That would allow it to say that it no longer controls the U.S. bank and therefore removes the company’s £60B of risk-weighted assets from its balance sheet.
    • Previously: RBS slashing Citizens Financial stake (Mar. 23 2015)
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  • Tue, Mar. 24, 3:26 AM
    • The Federal Reserve and FDIC have vetoed the "living wills" of the U.S. units of BNP Paribas (OTCPK:BNPQF), HSBC (NYSE:HSBC) and Royal Bank of Scotland (NYSE:RBS), stating that they could face sanctions by the end of the year if the issues are not fixed.
    • Living wills, which are a requirement under Dodd-Frank, spell out how a firm would wind down its operations under U.S. bankruptcy code if it got into trouble.
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  • Mon, Mar. 23, 7:24 AM
    • Citizens Financial Group (NYSE:CFG) launches a 115M share secondary offering of stock to be sold by Royal Bank of Scotland (NYSE:RBS). The underwriter greenshoe is 17.25M shares.
    • The sale will take RBS's stake from 384.7M shares of 70.3% of the company to 269.7M shares or 49.3%. If the underwriters exercise their option, the stake would be whittled to 46.1%.
    • Source: Press Release
    • Previously: Barron's: More room to run for Citizens Financial (March 21)
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  • Fri, Mar. 20, 3:49 PM
    • Prior to the financial crisis, UBS's trading floor in Stamford, CT was the world's largest, and RBS's right across the street wasn't far behind.
    • It's a different story since, and both banks are busy scaling back trading and U.S. operations. Staff at UBS's Stamford operation numbered just 500 as of last summer, down from a peak of 4K, and RBS has 1.6K, down from 2.4K a year ago - and with hundreds more set to go.
    • Current talks would have UBS renting about 25% of the space in RBS's building, with RBS retaining the rest.
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  • Wed, Mar. 18, 2:38 AM
    • The DOJ is considering revoking years-old settlements and prosecuting banks for manipulating interest rates should they be found to have committed currency-rigging after after deals were negotiated.
    • "Where banks fail to live up to their commitments, we will hold them accountable," said the DOJ's Leslie Caldwell. "The criminal division will not hesitate to tear up a DPA or NPA and file criminal charges."
    • Banks under investigation: BCS, RBS, UBS, HSBC
  • Fri, Mar. 13, 4:09 PM
    • It's looking like $1B is the price the DOJ wants from banks to make the forex manipulation probe go away, according to Bloomberg. Banks, however, are finally starting to feel their oats and pushing back a bit more than in the mortgage probes - the final penalty could be lower, according to sources.
    • Among the lenders discussing settlements: Barclays (NYSE:BCS), Citigroup (NYSE:C), JPMorgan (NYSE:JPM), RBS, and UBS. The government is also readying cases against individuals.
    • In the global investigations, banks have already agreed to pay regulators about $4.3B.
  • Fri, Mar. 13, 2:56 PM
    • Switzerland's Union Bancaire Privee looks to be the preferred bidder for Royal Bank of Scotland's (RBS -2.4%) Coutts International, reports Bloomberg, and an agreement could be announced as early as this month.
    • Others being considered include Credit Suisse and a joint bid from SocGen and DBS Group.
    • Standing in the way of a deal is price - at least in part thanks to the franc's recent surge - a German investigation into Coutts' private bank, and the political storm surrounding HSBC's involvement with tax evasion.
    • As of the end of 2013, Coutts had CHF32.6B in AUM and reported a full-year net loss of CHF45.1M. The unit could go for $600M-$900M, according to a Bloomberg source.
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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