Officials at the Royal Bank of Scotland (RBS) decided to withdraw from a multi-million dollar bonds sale due to complications in the deal, it has emerged today (4 April).
Three insiders with knowledge on the matter told Bloomberg that the financier pulled the plug on the $207 million agreement due to the fact the firm had previously lost out on similar deals.
Investors opted against completing the Score arrangement - which was scheduled to be finalised in February - as they were wary of previous losses incurred, despite the fact they saw the contract as a "key tool" in building up their capital.
Under the terms of the proposal, cash put up by bondholders would have been used to reimburse RBS should customer money not be sufficient to pay the necessary amount on a $3.2 billion book of derivatives trades, the sources noted.
This comes after Emma Boon of the Taxpayers' Alliance told Reuters that RBS and Lloyds should be sold sooner rather than later.
By Asim Shah