Printer Friendly

OSBORNE'S PLEDGE ON RBS SPLIT.

Byline: James Tapsfield

George Osborne expects to make a decision about breaking up Royal Bank of Scotland within weeks.

The Chancellor said he was looking at hiving off weaker parts of the state-controlled firm into a "bad bank" - a unit set up to contain toxic assets such as bad loans.

In an interview, he said the issue was "top of his in-tray".

Osborne added: "We are looking at the case for a bad bank and, if not a bad bank, what is the alternative strategy that really gets on top of the problems in that bank and goes on being what I want it to be, which is a bank supporting the British economy."

But he stressed the Government were not "close to the stage of being able to sell RBS shares".

"RBS was a much more complex bank," he said.

"To be fair to management past and present, it was a bank that was in a lot more trouble."

Osborne also said he was considering offering state-owned shares in Lloyds to the general public.

He added: "We are now looking actively at a retail offer for the next tranche of Lloyds shares."

The break-up of RBS was recommended by the Parliamentary Commission on Banking Standards chaired by Tory MP Andrew Tyrie.

Their report said that RBS were creating problems for the banking industry as a whole and for the British economy in general.

The split is also supported by Lord King, former governor of the Bank of England.

CAPTION(S):

DECISION Osborne
COPYRIGHT 2013 Scottish Daily Record & Sunday
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2013 Gale, Cengage Learning. All rights reserved.

 
Article Details
Printer friendly Cite/link Email Feedback
Publication:Sunday Mail (Glasgow, Scotland)
Date:Oct 20, 2013
Words:253
Previous Article:Celts told don't get caught by Fischer.
Next Article:BRIDGET'S JAUNT DIARY; Our intrepid adventurer on trip of a lifetime for her big Five-Oh; TRAVEL WRITER GOES AROUND THE WORLD IN 50 WAYS TO CELEBRATE...
Topics:

Terms of use | Privacy policy | Copyright © 2018 Farlex, Inc. | Feedback | For webmasters