A Wall Street banker told The Sunday Times that the American retail banking business of the Royal Bank of Scotland (RBS) would be worth more if it is sold. The banker said, "RBS keeps talking about floating this thing, but I think it is worth more if you sell it. It's an awkward size - not really big enough to float and too big to get an auction going with the big guys."
Citing unnamed sources, the Sunday Times also reported that Canada-based Toronto-Dominion Bank (TD Bank) was thinking of making an GBP 8 billion or USD 12.8 billion takeover bid for Citizens.
In February, RBS said it would be divesting 20% to 25% of its American retail banking business in the next couple of years. RBS said it would do this through a New York IPO. According to The Economic Times, British lawmakers were pressuring the bank to concentrate its lending business to households and businesses in Britain. RBS also needed to comply with the requirement of Britain's financial regulator to improve its capital position. An 82% stake of RBS is owned by the British government.
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