NatWest and RBS cards declined due to IT meltdown on Mega Monday
Bailed-out banks face angry backlash from customers unable to pay for goods or use their accounts for second time this year. Read more…
RBS accused of pushing small businesses to the edge to boost profits
Dossier claims business assets were seized cheaply amid call to end turnaround arm’s ‘conflict of interests’. Read more…
RBS sells 314 branches to church-backed Corsair consortium
Corsair deal will see revival of William and Glyn’s name, but exact price bailed-out bank receives will not be known until flotation. Read more…
Church-backed consortium leads bids for RBS branches
RBS has to sell 315 branches under terms imposed by EU during the £45bn taxpayer bailout of 2008-09. Read more…
Cost of splitting RBS could outweigh benefits, says Fitch
Fitch conclusion comes after analysis is commissioned to see if breaking up bank would make it easier to pump credit into economy. Read more…
RBS sell-off investigation ruled out
Government admits prospect of selling off bank remains distant, despite speculation over potential sale of rival group Lloyds. Read more…
RBS chief executive Stephen Hester quits with £1.6m-plus payoff
Hester, parachuted into the bailed bank during the 2008 crisis, will stand down at end of year as RBS prepares for privatisation. Read more…
Osborne urged to distribute RBS and Lloyds shares among voters
Government stake should be sold off using scheme in which those who apply pay for shares at later date, says thinktank. Read more…
RBS rejects joint proposal by US private equity firms JC Flowers and Apollo, but will contact other bidders in next few days
Royal Bank of Scotland has narrowed a shortlist of prospective bidders for hundreds of branches it must sell, with JC Flowers and Apollo dropping out of the race, sources familiar with the matter said.
The part-nationalised bank told the US private equity firms this week that their joint proposal had not been successful, the sources said. RBS is expected to contact other bidders in the next few days.
RBS has to sell 315 branches as a condition of receiving a £45.8m bailout during the 2008 financial crisis that left it 82% owned by the government. A planned £1.65bn sale to Santander collapsed last October.
A proposal from several of Britain’s biggest investment firms, fronted by former Tesco finance director Andrew Higginson, remains in the running, one of the sources said, along with a proposal from US private equity firms Centerbridge Partners and Corsair Capital. Virgin Money is waiting for a response to its proposal from RBS.
RBS may finalise a shortlist next week but the timetable for an eventual sale remains uncertain given the different types of proposals being considered.
RBS is preparing the business, code named Rainbow, for a stock market flotation but is open to the idea of having cornerstone investors on board before an initial public offering. The bank has said a sale this year is now unlikely, meaning it will have to ask European regulators to extend a December 2013 deadline.
UBS is advising RBS on the sale. RBS, UBS and JC Flowers declined to comment on the process.
Jon Pain, who worked at Financial Services Authority until 2011, takes new role overseeing regulatory affairs at bailed out bank
A former regulator is joining Royal Bank of Scotland in a newly created role overseeing regulatory affairs and conduct as part of the effort by the bailed out bank to clean up its reputation in the wake of the Libor rigging scandal.
Jon Pain, who was at the Financial Services Authority for four years until 2011, is joining the bank in August as head of conduct and regulatory affairs. He will become one of the most senior executives at the bank, joining the executive committee (just below board level) and potentially earning millions of pounds a year.
Stephen Hester, the RBS chief executive, said: “The creation of this position sends a clear message about how we want to do business – serving customers well, completing our return to a safe and conservative risk profile, and generating sustainable returns for shareholders.
“If we achieve these objectives, and do so in the right way, RBS will become a really good bank.” Hester is keen to oversee the privatisation of RBS, possibly next year.
Pain is joining from accountants KPMG where he was partner for financial services after leaving the FSA as a managing director of supervision in 2011. Before that he had worked for Lloyds from 1973 until 2008.
Pain is among a number of officials who left the FSA before it was carved up in April to become the Financial Conduct Authority overseeing most elements of City behaviour, allowing the new Prudential Regulation Authority to regulate the biggest banks.
His appointment comes in the wake of big banks are facing damage to their reputations from mis-selling scandals and penalties for bad behaviour, such as the £390m fine RBS received for rigging Libor.
Barclays recruited the former FSA boss Hector Sants into a top role overseeing regulation at the start of the year while HSBC has also made changes to its compliance and regulation divisions since it was fined a record £1.2bn for money laundering by US authorities.
Pain’s appointment is the latest in a string of management changes by Hester as a result of the decision to move finance director Bruce van Saun to run the US operation Citizens ahead of its partial stock market flotation next year. Van Saun is being replaced by head of risk Nathan Bostock.
In 2010 when Sants had quit the FSA – before changing his mind and then finally quitting last year – Pain had reportedly been expecting to have replace him, on an interim basis.