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Rbs 'bad Bank' Due In Weeks

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It's official sports fans. As most of us suspected, Gidiot couldn't help himself.

Guess who gets to profit from the sale, and guess who gets to keep the crap? dry.gif


The Royal Bank of Scotland is to be broken up by the Government into a "good bank" and a "bad bank" with the go-ahead to be given within the next few weeks, the Chancellor has disclosed.

George Osborne said the future of RBS was his "priority for the next two or three weeks" and there was no chance the bank could be left in its current form.

"That's the top of my in-tray," Mr Osborne told The Telegraph, as he also disclosed that while a sale of the state's 81pc holding in RBS would now not happen until after the next general election, the Government was preparing to sell Lloyds Banking Group shares to the public.

"We are now looking actively at a retail offer for the next tranche of Lloyds shares," he said. "With RBS we are not, at the moment, close to the stage of being able to sell RBS shares."

He added: "RBS was a much more complex bank. To be fair to management past and present it was a bank that was in a lot more trouble. The clean-up job has been more difficult but we have got to make these decisions now about the future for RBS."

The Government is understood to be weighing up three potential models for dealing with the "toxic assets" of RBS. The first would to set up a bad bank inside RBS that would be run by an independent team. Alternatively, the advisers have suggested copying the model used by Swiss bank UBS which also created a separate bad bank, but with the support of the country's central bank. A third option would be to establish an entirely separate taxpayer-backed bad bank into which RBS's toxic assets could be placed, along the lines of the method used by the Swedish government in the 1990s. Advisers from Rothschild have been preparing a report on what to do with RBS, while US asset manager BlackRock, which was hired at the same time to analyse RBS's portfolio, has identified between £50bn and £60bn of assets that would be placed into any bad bank.

This figure is in line with the £54bn of assets currently attributed to RBS's "non-core" division, which has been responsible for reducing the bank's exposure to problem loans and other bad assets.

Edited by zugzwang

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