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David Cameron calls for faster RBS reform | David Cameron calls for faster RBS reform |
(about 1 hour later) | |
The Prime Minister, David Cameron, has called on Royal Bank of Scotland to speed up the overhaul of its business. | The Prime Minister, David Cameron, has called on Royal Bank of Scotland to speed up the overhaul of its business. |
Speaking on a trip to India, Mr Cameron said he wanted the largely state-owned bank to "accelerate the adjustments" it was making. | Speaking on a trip to India, Mr Cameron said he wanted the largely state-owned bank to "accelerate the adjustments" it was making. |
He added he was "keen to examine all possibilities" for putting RBS back into the private sector. | He added he was "keen to examine all possibilities" for putting RBS back into the private sector. |
However, he played down reports that the government was preparing to sell its stake in the bank. | However, he played down reports that the government was preparing to sell its stake in the bank. |
RBS is 82%-owned by the tax payer after the government injected £45bn to stop it from collapsing during the financial crisis. | RBS is 82%-owned by the tax payer after the government injected £45bn to stop it from collapsing during the financial crisis. |
When asked to respond to comments that the government was preparing to sell its stake by 2014, Mr Cameron responded with: "These are all interesting questions for the future." | When asked to respond to comments that the government was preparing to sell its stake by 2014, Mr Cameron responded with: "These are all interesting questions for the future." |
"The first job is to turn around the performance of RBS and to strengthen its balance sheet, strengthen its business and that's what [RBS chief executive] Stephen Hester and his team are doing." | |
Mr Hester started the process of reforming the bank in 2009 and said it would take up to five years. | |
The aim of the overhaul is to make the bank safer and more profitable. It includes selling off its less important businesses and paring back its investment arm. A 30% stake in its insurance business, Direct Line, has already been floated on the stock market. | |
In November, the bank said that its restructuring plan was on track and would be completed in the next 18 months. | |
As part of the restructuring, RBS has been struggling to sell more than 300 branches by 2014, at the behest of the European Union, in return for its state aid. A deal with Santander fell through last year. The latest reports suggest that City investors are poised to enter the fray. | |
The bank was also recently fined for being embroiled in a global rate-rigging scandal. It was fined £390m ($610m) by UK and US authorities, which it intends to pay from past, current and future bonuses. |
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