City investors 'against break up of RBS'

19 June 2013

Some prominent members of the financial sector have said they will oppose any plans to break up the Royal Bank of Scotland (RBS) as it would hinder any attempt to recover the taxpayers' money put into the company after the financial crisis.

Sky News reports institutions such as Royal London Asset Management and Standard Life Investments have expressed concerns on splitting the bank in two.

The Parliamentary Commission on Banking Standards has recommended the government review alternatives for selling off RBS and splitting the bank in two is one option that has been put forward.

Last week, the bank’s chief executive Stephen Hester, announced he would leave later in the year, which is seen as a decision triggered by chancellor George Osborne’s desire to have a new leader in place when RBS’s rejoins the private sector.

However, Mr Osborne told BBC Radio 4's Today programme Mr Hester left of his own accord after a meeting with the board of RBS.

By Claire Archer

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