Sir Mervyn King has blown open the debate about the future of Royal Bank of Scotland by describing the current situation as “nonsense” and calling for the bailed out bank to be broken up into a good and bad bank.
Less than a week after the Edinburgh-based bank insisted it could be ready for partial privatisation ahead of the May 2015 election, the Bank of England governor laid bare his disagreement with the chancellor, George Osborne, over the future of RBS, saying the state-backed bank could not be sold off until it acknowledges the full scale of its bad debts.
Royal Bank of Scotland has lost all the money invested in it by the taxpayer six years ago when the lender came close to collapse.
The bank has confirmed its total losses since its bailout have now drawn level with the £46bn pumped into it in 2008 in return for an 81 per cent stake, reports The Telegraph.
Royal Bank of Scotland Group plc (RBS) is expected to release £800 million ($1.3 billion) from its provision for bad loans. The UK-based, state-backed bank now believes that the impairment from bad debt will be significantly lower than its previous 2014 guidance of £1 billion ($1.6 billion). The move comes amid improving economic conditions and asset prices.
WASHINGTON – The United States economy likely expanded slightly in the fourth quarter, according to data on Friday that suggested a surprise drop in GDP reported by the government last week was overstated.
The U.S. trade deficit narrowed to its lowest point in nearly three years in December on a drop in oil imports and a surge in exports.
Trade data for December paint a reassuring and encouraging picture of the U.S. economy at the end of last year
NEW YORK — It was an ugly holiday season for Sears.
Sears Holdings Corp.’s shares plummeted in after-hours trading Thursday after the beleaguered retailer said it expects a hefty loss in the fourth quarter and for the year as sales for the critical holiday season dropped sharply.
Upstart Canadian activist investor Smoothwater Capital Corp., armed with a 12% stake in financial services firm Equity Financial Holdings Inc., is trying to shake up the board and reinstate the former chief executive of the company’s mortgage-lending subsidiary.
Nick Kyprianou, a veteran of alternative mortgage lender Home Capital Group — where he rose to the position of president — was replaced at Equity Financial in early October.
LONDON (Reuters) - State-backed lender Royal Bank of Scotland confirmed on Wednesday it would exit the UK Government's Asset Protection Scheme this week, after paying required premiums and reducing assets by 63 percent to around 105 billion pounds. RBS has paid around 2.5 billion pounds to participate in the specially designed insurance scheme that capped potential losses on almost 300 billion pounds of its most toxic assets after its bailout in 2008. The bank also paid around 1.5 billion pounds to the UK Treasury for liquidity support. ...