View more on these topics

Banking commission set to recommend RBS break-up

RBS-Building-2012-700x450.jpg

The parliamentary commission on banking standards is set to recommend splitting up the Royal Bank of Scotland into a good and bad bank.

The BBC reports that a draft final report, given to members last Friday, calls for RBS to be split in the same way as Northern Rock was in 2008 with toxic assets separated from the profitable part of the bank.

Commission members have until next Monday to make amendments and the final report is set for publication in mid to late June.

One commission member has told Money Marketing the paper could change “quite markedly” between final draft and final publication depending on which amendments are taken forward, meaning an RBS break-up may not neccessarily become a final recommendation.

Outgoing Bank of England governor Sir Mervyn King recommended splitting up RBS to the commission in March but it is opposed by the Treasury.

Chancellor George Osborne has pledged to amend the banking reform bill to implement the recommendations of the banking commission’s final report.

Reuters is reporting thet Coutts head of international operations Alexander Classen says the bank will not be sold by RBS in a bid to raised capital.

Recommended

3

Reyker delays £27k maturity payment to Keydata investor

A Keydata investor is lodging a complaint against Reyker Securities following a delay of over one month to pay £27,000 due under a matured plan. Douglas Bruce, a former deputy head of finance for the Bank for International Settlements, invested in a Keydata Dynamic Growth Plan before the role of plan manager passed to Merchant […]

Chelsea BS cuts rate on two-year fixed to 1.69%

Chelsea Building Society has cut its two-year fixed rate to 60 per cent loan-to-value by five basis points to 1.69 per cent. The direct-only product comes with a £1,545 fee and reverts to the lender’s standard variable rate, which is currently 5.79 per cent. The cut comes four days after Tesco launched its lowest ever […]

3

Thinktanks warn austerity could last beyond 2020

The Institute for Government says austerity could last beyond 2020 as the Government turns from reducing the deficit to cutting its debt. At a joint Institute for Fiscal Studies and IfG briefing in London this morning ahead of the 2015/16 spending review, IfG deputy director Julian McCrae said strict controls on public spending could stretch […]

Frexit & contagion risk in Europe

Many commentators have suggested that the UK’s exit from the European Union will trigger a domino effect, leading to its eventual break-up. Neptune’s Rob Burnett discusses the likelihood of this happening. Read more: Important information Investment risks Neptune funds may have a high historic volatility rating and past performance is not a guide for future […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment