UK: Rothschild to advise on RBS potential split-up
LONDON (AP) — Britain’s Treasury says it has appointed investment bank Rothschild to advise on a potential split of taxpayer-owned Royal Bank of Scotland.
The Treasury said in a statement Wednesday that Rothschild will provide expert financial advice on a U.K government review, which aims to look into whether or not to transfer toxic assets at RBS into a separate legal entity known as a “bad bank.” Some, including Bank of England former governor Mervyn King, have argued that the losses for the taxpayer might be lightened with such a split.
Treasury chief George Osborne announced last month the government review will come to a decision in autumn.
RBS is more than 80 percent owned by the British taxpayer after receiving a 45 billion-pound ($71 billion) bailout in 2008.