RBS seeks to restrict reliance on APS
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Royal Bank of Scotland is attempting to cut the value of the toxic assets it will put into the Government’s asset protection scheme by up to £60bn, according to reports.
Originally the bank had planned to ring fence around £325bn in bad assets under the scheme, but it is now understood to be working on ways to cut that to below £300bn and possibly as low as £265bn, according to The Financial Times.
RBS, which is 70 per cent owned by the taxpayer, is expected to announce a plan within three weeks. Any proposal will be subject to the approval of the Government and the European Commission.
Lloyds Banking Group is currently attempting to sidestep the APS altogether and is trying to thrash out a deal with the Treasury to allow it to exit the scheme.
Reports suggest that Lloyds could reach an agreement to exit the scheme as early as this week but the proposals are still under discussion.
Lloyds is planning to complete a £25bn fundraising exercise before the year end with between £12bn and £15bn being raised through a rights issue.
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