RBS-Looking For Cash In the Attic

Posted on September 19, 2009 by editor
Posted in Economy News Tagged attic, cash, Down, Loans, RBS, scale, sell

Well it’s a busy time for RBS at the moment. RBS are on a selling mission. Chief executive Stephen Hester has a plan to scale down the bank.

They are flogging off the family silver and anything else of any ‘real’ value in an attempt to increase their physical cash holdings and get rid of useless items which have been gathering dust in their attics.

Here are a few more news stories on our publicly owned bank.

RBS Sells Off Last Of Asian Assets

(RBS) is close to sealing a £200m deal to sell its retail and commercial banking operations in India, China and Malaysia to Standard Chartered, its British-based rival that specialises in emerging markets.The bank sold its businesses in Taiwan, Hong Kong, Singapore and Indonesia to Australia and New Zealand Banking Group last month for £325m. “Standard Chartered is currently the frontrunner in this auction,” said a well-placed City source, adding that HSBC was “still hovering in the background”.

Possibility Of RBS Plane Leasing Company For Sale

RBS Aviation Capital, the plane leasing company owned by the Royal Bank of Scotland, could be put up for sale after it was placed into a non-core unit with £230bn of bad loans, in order to be disposed of.Goldman Sachs has been called in to assess options for the unit, which leases aircraft to 100 airline customers in 40 countries.The business has 90 employees and is located in London, Dublin, Toulouse, New York, Hong Kong, Shanghai, Singapore and Dubai.

RBS To Revive Old Bank Brand To Sell

Royal Bank of Scotland is considering resurrecting Williams & Glyn’s, the high street bank it wound down in the mid 1980s, in order to sell it off. Williams & Glyn’s had 330 branches, mainly in the North West of England, and still exists as a legal entity that files accounts.

Other Sell Off’s This Year

Back in May the private jet used by disgraced banker Fred Goodwin to travel the world in luxury has been sold by RBS. The Dassault Falcon 900EX aircraft was flogged by the new management for £18million – millions less than the bank paid for it seven years ago.

What Does It All Mean?

The government stake will increase to 82% once RBS concludes negotiations with the Treasury to insure toxic assets worth £317bn under the government’s asset protection scheme. But, if RBS opted to insure a lower sum and raise fresh capital from its institutional shareholders, the state’s equity holding would be reduced and the taxpayer would save money. Time will tell if they are successful or not. One would assume that this can only be a good thing for the beleaguered tax payer.

Article excerpts courtesy of: http://www.business-sale.com & http://www.guardian.co.uk