The Daily Telegraph reported that the UK government would decide in November on plans to split the Royal Bank of Scotland Group. In an interview with the newspaper, Chancellor of the Exchequer George Osborne said the government was considering its options for the bank. He said, "We are looking at the case for a bad bank, and if not a bad bank, what is the alternative strategy that really gets on top of the problems in that bank."
There were three bad bank models being examined by the government for the toxic assets of RBS. The first model was that the bad bank would be under the hands of an independent team within the bank. The second was that the bad bank would be supported by the central bank while the third would be separate unit supported by taxpapers.
Osborne also said the government would not be selling its equity in RBS until after the next polls.
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