RBS May Place GBP 300 Billion Assets Into A 'Non-Core' Subsidiary

Stephen Hester, the chief executive of Royal Bank of Scotland (RBS), will this week trigger the dismantling of the empire assembled by his predecessor, Sir Fred Goodwin, by announcing plans to create a "non core" subsidiary into which about 300

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Stephen Hester, the chief executive of Royal Bank of Scotland (RBS), will this week trigger the dismantling of the empire assembled by his predecessor, Sir Fred Goodwin, by announcing plans to create a “non-core” subsidiary into which about 300 billion of unwanted assets will be placed, The Telegraph reports.

The Sunday Telegraph has learned that Hester will replicate a structure he used while he was chief operating officer at Abbey in 2002 by establishing a new division that will sit within RBS but which will be ring-fenced from the rest of the bank.

Hester hopes that adopting this structure will bring some clarity to employees and to investors. But he will not be rushed into selling assets at fire-sale prices and will stress to the City that his strategic plan is to be delivered during the next five years.

To read the full story please visit the Telegraph’s web-site.

D.C.

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