Latest RBS Hit May Speed Up Sale Of U.S. Arm Citizens

wochit business
January 28, 2014 AT 7:55 AM
Royal Bank of Scotland's latest 3 billion pound hit for past misdeeds will leave the state-backed bank low on capital, potentially pushing new boss Ross McEwan to speed up a sale of its Citizens banking business in the United States. RBS, 82 percent owned by the UK government, revealed the new provisions in a profit warning rushed out on Monday, which is likely to leave the bank with a 7- 8 billion pound loss for 2013. The bank was already planning a partial flotation of Citizens this year and to sell the entire business by the end of 2016. Analysts value it between $9 billion and $15 billion.