7th Oct 2013 05:51
LONDON (Alliance News) - Royal Bank of Scotland Group PLC could yet face a good-bad bank split after it emerged that Chancellor George Osborne has already sought clearance from Brussels over the matter, the Financial Times reported Monday.
Osborne filed papers in July to inform the European Commission of the move, which could even include new state funding just before new EU regulations that would constrain the Chancellor's options.
However, the filing for European clearance does not predetermine the outcome of RBS, the FT reported, citing officials familiar with the matter.
A Treasury review is set to conclude this month over whether toxic assets at RBS should be put into a state-owned bad bank that could speed up RBS's recovery, as it has so far lagged behind Lloyds Banking Group PLC.
http://presscuttings.ft.com/presscuttings/s/3/viewPdf/77697683
By Samuel Agini; [email protected]; @samuelagini
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