The Royal Bank of Scotland (NYSE:RBS), plans to create an internal “bad bank” to fence off its riskiest assets, this measure is designed to restore its relationship with the British government and speed up its eventual privatization. Philip Hampton RBS chairman in a statement , who had previously said the bank could be ready for privatization in 2014, however the privatization may have been pushed back.
RBS to Split Off $61 Billion in Loans Into Internal ‘Bad Bank’ – New York Times
BBC NewsRBS to Split Off $61 Billion in Loans Into Internal ‘Bad Bank’New York TimesThe Royal Bank of Scotland, which is principally owned by the British government after a £45 billion bailout, said that it would separate about 38 billion pounds, or …
In recent news Royal Bank of Scotland (NYSE:RBS) must act immediately and must work harder if taxpayers will insist on getting back their £46bn investment. However, the new plan is to get rid of the 70% radioactive debt which includes the banks worst commercial property and Irish lending which have accumulated over two years. They hope that perhaps it can all be gone within three years.
However, RBS’s new chief executive, Ross McEwan, says he has the opposite plan in mind.
He says that since his bank is no longer a weapon of lethal mass wealth and economic destruction – for which he thanks his predecessor, Stephen Hester – it can now become focused as a very British commercial bank, serving the needs of British people and companies.
Mr McEwan’s plans can be seen as the culmination of the rolling back of so much of the expansion of RBS that took place during the boom years, under the leadership of its tarnished former chief executive, Fred Goodwin.
RBS chief exec Stephen Hester resigns from bank (12Jun13)
RBS chief executive Stephen Hester gives an interview on his decision to quit his role at the bank. Recorded from Channel 4 News, 12 June 2013.