Rothschild to be appointed advisor to RBS split

2nd Jul 2013 14:25

Rothschild is this week expected to be named advisor on the potential separation of Royal Bank of Scotland into a good bank and bad bank, according to reports.The investment bank is said to have been chosen by the UK government to assess the 81% state-owned lender and will begin writing a report immediately with the aim of finishing it in the next two months. It comes after the Parliamentary Commission on Banking Standards last month recommended breaking up RBS and putting its toxic assets into a 'bad bank'. However, Chancellor George Osborne has opposed the proposal, mainly due to the billions of pounds it would costs taxpayers.The bank was bailed out during the global financial crisis in 2008. The government has since been working to return the bank to the private sector. In May, Chairman Philip Hampton said the government will be able to start reducing its stake by the end of 2014 following the completion of most of the lender's restructuring.RD