The Royal Bank of Scotland (RBS) has decided to hand the parts of ABN Amro's business it acquired in 2007 back to the Dutch bank, it emerged today (9 March).
According to the Daily Telegraph, the British financier has opted to cut its losses on this ill-fated takeover deal by getting rid of the investment banking divisions of its continental counterpart.
Prior to the onset of the global economic downturn, RBS decided to purchase all of ABN Amro's operations in this arena but this proved an unsuccessful move when the bank had to be part-nationalised around 12 months later.
And Jan de Ruiter, chairman of RBS's Dutch business, has now revealed that these arms will now be sold back to ABN Amro by the summer, with the deal expected to involve no financial payment.
In addition, around 70 members of staff at RBS will transfer to ABN Amro to continue their work there.
By Gary Cooper