Cable: RBS should be reformed

7 March 2012

The Royal Bank of Scotland (RBS) should be split up and reformed in a new guise in the near future.

That is the opinion of business secretary Vince Cable, who has told prime minister David Cameron and his deputy Nick Clegg that the financier - 82 per cent of which is state-owned following its bailout - should be converted into a "British business bank".

In a letter to the senior members of government leaked to the BBC, Mr Cable - who is also MP for Twickenham - called on policymakers to accept the fact that "RBS will not return to the market in its current shape".

Therefore, he stated that now is the ideal time for the Conservative-Liberal Democrat alliance to "carve out" a new bank "with a clean balance sheet and a mandate to expand lending rapidly to sound business".

Furthermore, the official went on to say it is important for the government to be more proactive in its response to crises in the future.

By Asim Shah

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