The 14 Words

Monday, 21 October 2013

RBS 'bad bank' due in weeks, says George Osborne

Chancellor discloses imminent break-up of bailed-out Royal Bank of Scotland

The Royal Bank of Scotland is to be broken up by the Government into a "good bank" and a "bad bank" with the go-ahead to be given within the next few weeks, the Chancellor has disclosed.

George Osborne said the future of RBS was his "priority for the next two or three weeks" and there was no chance the bank could be left in its current form.

"That's the top of my in-tray," Mr Osborne told The Telegraph, as he also disclosed that while a sale of the state's 81pc holding in RBS would now not happen until after the next general election, the Government was preparing to sell Lloyds Banking Group shares to the public.

"We are now looking actively at a retail offer for the next tranche of Lloyds shares," he said. 
"With RBS we are not, at the moment, close to the stage of being able to sell RBS shares."
He added: "RBS was a much more complex bank. To be fair to management past and present it was a bank that was in a lot more trouble. The clean-up job has been more difficult but we have got to make these decisions now about the future for RBS."

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