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The Royal Bank of Scotland Group plc (RBS)

  • Jan. 11, 2011, 8:14 AM
    Testifying before the U.K. Parliament, Barclays CEO Bob Diamond pledges to "exercise restraint" with bonuses while noting "the environment we operate in," a reference to the need to pay up to retain talent. Diamond squelched rumors that Barclays would leave London should the U.K. clampdown on banker pay.
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  • Jan. 10, 2011, 9:08 AM
    Sterling recovers from a plunge following news that British house prices fell 1.3% in December. The U.K.'s answer to Lawrence Yun, Martin Ellis believes low rates limit risk to the downside. Others see serious headwinds causing a further 10% drop in 2011. Sterling buys $1.5526.
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  • Jan. 7, 2011, 7:17 AM
    Reaction continues to new laws on the way mandating "haircuts" to senior bondholders of failed banks as CDS on the PIIGS+Belgium rise (with Belgium and Ireland hitting new records). Spanish banks are hit again, now down around 5% for the week. (STD) -1.79%, (BBVA) -1.8% in Madrid. Euro buys $1.2975.
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  • Jan. 6, 2011, 12:44 PM
    The euro drops 1%, European stocks give up gains, and sovereign debt insurance costs for Western Europe rise above Eastern Europe for the 1st time ever after the EC moves to make "haircuts" part of future bank resolution authority. This only deals with bank debt, but can sovereign paper be far behind?
  • Dec. 30, 2010, 3:19 PM
    U.K. financial services firms will strongly increase hiring next year, with capital markets and asset management companies leading the way, according to a survey by eFinancialCareers. Financial services employs about 1M people in the UK, accounting for 10% of GDP.
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  • Dec. 28, 2010, 12:03 PM
    Saying the exposure of large banks to sovereign debt is already public, Société Générale (SCGLY.PK) CEO Frédéric Oudéa believes Europe does not need another round of stress tests. "Markets can make calculations and I think ... people totally overestimate the impact ... on this sovereign debt."
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  • Dec. 17, 2010, 9:35 AM
    Concerned about a delay in the recovery for Ireland's economy and asset prices, Lloyds (LYG -3.7%) sees a further 10% of its £26.7B Irish portfolio becoming impaired by year-end, and sets aside £4.3B to cover losses. Lloyds is the worst performer on a flat FTSE 100 today.
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  • Dec. 17, 2010, 7:58 AM
    The BoE's Financial Stability Report urges domestic banks to build a buffer against eurozone debt issues by restraining dividends and bonuses. Low interest rates, "masking latent distress among some overextended borrowers," turning high is also a worry.
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  • Dec. 14, 2010, 8:40 AM
    BoE wanted to set up a global bank bailout in 2008, according to a March 2008 cable leaked by WikiLeaks, and sought to work with the U.S., Switzerland and Japan to coordinate bank recapitalizations. BoE's King said it was "hard to look at the big four U.K. banks (RBS, BCS, HBC, LYG) and not think they need more capital."
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  • Dec. 13, 2010, 10:05 AM
    A BoE study argues that lower lending in the U.K. is more a result of banks restricting credit, rather than a fall in demand from borrowers. This "credit shortage" may anger lawmakers who have already tied the bonus of Lloyds' (LYG) CEO to lending targets. The government owns 40% of Lloyds.
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  • Dec. 13, 2010, 7:16 AM
    Describing the U.K. as having one of the "world's most concentrated and least competitive banking systems," Paul Myners, a key supporter of "super banks" during the financial crisis, now calls on the Vicker Commission to split up Lloyd's (LYG) and/or RBS (RBS).
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  • Dec. 9, 2010, 9:43 AM
    The U.K.'s five major banks - Barclays (BCS), Royal Bank of Scotland (RBS), HSBC (HBC), Standard Chartered (SCBFF.PK) and Lloyd's (LYG) - will pay hundreds of millions of pounds per year to the U.K. government as a charge for their risks to the economy, according to final draft legislation. The levy also will hit large U.S. and European banks but will apply only to their U.K. balance sheets.
  • Dec. 8, 2010, 7:22 AM
    Regulators are hoping February's round of stress tests on European banks will be more credible than the previous attempt. The cost of insuring bank debt has risen sharply as markets price in the possibility of sovereign default where the initial tests did not.
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  • Dec. 2, 2010, 7:42 AM
    U.K. regulators close their eighteen-month probe of the circumstances which led to RBS' (RBS +1.1%) bailout, saying they won't take any enforcement action. Regulators had found lots of bad decisions but no actual wrongdoing.
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  • Nov. 26, 2010, 9:00 AM
    Premarket gainers: CPII +33%. GSL +8%. DLM +4%.
    Losers: AIB -11%. IRE -9%. PCBC -9%. NBG -6%. STD -5%. RBS -5%. LYG -5%. ALU -4%. DB -4%. GGB -4%. GFI -4%.
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  • Nov. 23, 2010, 8:50 AM
    UBS upgrades Royal Bank of Scotland (RBS -0.4%) to Buy from Neutral on valuation grounds. The bank's $80B of Irish exposure is manageable, and though it will be some time before the benefits of restructuring are made clear, the stock is attractive at current values.
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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