View more on these topics

Govt RBS sale pushed back over US sanctions

RBS sale Branch 480RBS sale reportedly delayed amid ongoing US mis-selling settlement

The Government is waiting for RBS to clear the air with US authorities before it sells down its £3bn stake in the lender, according to reports.

The Financial Times says that, before it returns to selling its 71 per cent stake, the Government is planning to let RBS reach a settlement with the Department of Justice over the mis-selling of financial crisis era mortgage-backed securities.

Senior RBS staff have acknowledged that the looming fine is “a significant overhang on us and I think it’s holding back the Government’s ability to privatise us”.

After RBS settled other legacy issues, including a £4.2bn payment for mis-selling to the Federal Housing Finance Agency and a deal to make sure its bailout conformed with EU rules, some insiders had said the Government was likely to try and increase liquidity in the shares by restarting its sell-off over the summer.

However, a banking source tells the Financial Times that this had been taken off the table in June when Theresa May lost her majority.

A source tells the paper: “Selling ahead of the DoJ is a higher risk proposition…It would be better to have this behind us. But if we are in a situation where it could take a very long time, then we could be forced to take a different path.”

Recommended

British GBP UK pounds 5 note 450

Barings to close five funds following MassMutual merger

Barings is closing five funds following the merger of Baring Asset Management, Babson Capital Management, Cornerstone Real Estate Advisers and Wood Creek in 2016. The decision to close the Multi Asset Income fund, Global Mining fund, Global Growth trust, UK Growth trust and Emerging Markets fund follows a review of the range when it was decided […]

8

Nutmeg losses pass £9m

Robo-adviser Nutmeg has seen its losses increase again as it continues its search for profitability by building an advice service. While turnover increased from £1.7m to £2.6m for the year to December, expenses also increased by more than a million, resulting in an annual loss of more than £9.3m, up from £8.9m in 2015. The […]

Protection-shelter-umbrella

Scottish Widows signs new protection underwriting deal

Scottish Widows is the latest protection provider to offer partially underwritten quotes through The Exchange, Iress’ online comparison quote and transaction portal. Products available through Scottish Widows Protect, the company’s intermediary protection proposition, will be added to the portal. Providers on Iress’ enhanced underwriting service now include Scottish Widows Protect, AIG Life, Aegon, Aviva and […]

Columbia Threadneedle hints at post-Brexit fund range plans

Columbia Threadneedle Investments has said it will replicate its multi-asset and managed fund ranges in Europe in preparation for Brexit. After the EU referendum last year, the global asset manager said it would look to expand its operations in Europe. The firm already has a presence in Luxembourg and a range of Sicav funds. Newly-appointed […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. This probably the most bent bank in the world, that’s why it had to be rescued, The government should not be selling it on until numerous customers of the bank which includes Nat West and GRG etc have settled all UK claims satisfactorily. Why is this allowed to continue in this dishonest fashion. If this were a firm of IFA they would have been hung drawn and quartered many years ago. This must surely now be viewed as a very dishonest. country

Leave a comment