UK chancellor 'putting pressure on RBS to leave US retail banking sector'

21 June 2013

The UK chancellor George Osborne is putting more pressure on the Royal Bank of Scotland (RBS) to exit the US retail banking market sooner rather than later.

Sky News reports people familiar with the ongoing discussions have claimed Mr Osborne has said the bank should move forwards with the stock market floatation of Citizens, one of the main retail banks in the US, as quickly as possible.

The UK government is currently considering splitting RBS into two parts and is reportedly looking to remove Ulster Bank, the Irish subsidiary.

Mr Osborne has said the bank has already seen much reform in recent months, but that further work is necessary in order to prepare it for its eventual privatisation.

The government pumped £45.5 billion ($) of taxpayers money into the troubled bank in 2008 after the financial crisis took hold.

Lloyds is another bank partially owned by the government and is also being lined up for reprivatisation.

By Tony Aynsley

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