23rd Sep 2013 05:40
LONDON (Alliance News) - Royal Bank of Scotland Group PLC is set to discover after the Conservative Party conference whether the Treasury wants to break it up into a good and bad bank, the Independent on Sunday reported.
The Treasury's report is unlikely to go as far as to recommend a full-scale split, but it could recommend that RBS divest its Irish business after pressure from the Parliamentary Commission on Banking Standards.
The commission's chair, Andrew Tyrie, on August 27, wrote an open letter urging open-mindedness to a split, though it is widely believed that RBS is opposed to the idea, with ex-Chief Executive Stephen Hester thought to have resigned partly because of his disagreement with the idea.
The Conservative Party conference begins on Sunday with the report due to follow shortly after, according to James Moore.
The review, which was announced in Chancellor George Osborne's annual Mansion House speech in June, is being conducted by the Treasury with assistance from Rothschild.
RBS shares Friday closed at 364.4 pence, down 4.6 pence, or 1.3%
http://www.independent.co.uk/news/business/news/fullscale-rbs-split-into-good-and-bad-bank-to-be-rejected-8831811.html
By Samuel Agini; [email protected]; @samuelagini
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