Royal Bank of Scotland (RBS) to sell ABN Amro

Royal Bank of Scotland (RBS) want to sell their New Zealand operations of ABN Amro, this is the Dutch bank that they purchased just last year. It is reported that National Australia Bank was in talks with RBS to buy ABN’s investment and corporate banking units.

As we mentioned above, it was just last year when RBS which was led by a consortium purchased ABN Amro, the deal was worth 71bn euros, that is $112bn or £56.7bn.

According to BBC News

, RBS first purchased the bank they thought that it was going to be a sound investment, now we are facing a global credit crisis which means that we now live in a tougher economy, this has now forced the Royal Bank of Scotland to strengthen its finances.

RBS has been working hard in coming up with some extra cash which is needed in the current economic climate; they have just raised £12 billion by selling shares to existing shareholders in a rights issue.

The bank has also sold of Angel Trains to a consortium worth £3.6 billion. RBS are also keen to sell of their insurance assets; these include Direct Line and Churchill.

Although RBS are doing all they can to try and raise extra capital by selling of some of their assets, they will find it hard to get the price that they are looking for.