Royal Bank of Scotland (RBS): Government Review

Royal Bank of Scotland (RBS) was told yesterday by the UK government that its business strategy, boardroom appointments and lending policy were being reviewed. This comes after the British taxpayer took 58 percent stake in the Edinburgh-based bank last week.

The UKFI which is the body that has been set up to look after the government’s stake in RBS have said they are in active discussions regarding the bank’s strategy.

Merrill Lynch hired John Crompton, will be controlling the Government’s stake. Last week existing shareholders at RBS rejected £15 billion share offering, this leaving the taxpayer will a £2.5 billion paper loss.

Stephen Hester the new Chief Executive of Royal Bank of Scotland made a promise to give 6 month’s grave to homeowners which fall behind in their repayments, most of the other main high street banks are only offering 3 months before they begin repossession proceedings.

Source: Guardian