Osborne to stop short of braking-up RBS
According to reports, Chancellor George Osborne is to stop short of splitting the Royal Bank of Scotland (RBS) into ‘good’ and ‘bad’ banks. Sky News reported that Osborne is instead set to recommend the creation of an internal ‘bad bank’ in a move which will avoid a shareholder vote.
The chancellor is to meet with senior Treasury officials later this week and set out a blueprint for the future of RBS, Sky reported.
The meeting follows a four month review by Rothschild and BlackRock into a possible break-up of the 82% taxpayer-owned bank.
The review’s key recommendations will focus internal surgery rather than a wholesale break-up of RBS, according to Sky.