RBS to be split up soon

RBSThe government in the UK is set to announce more details relating to its plans to split the bank into separate entities.

Ross McEwan, the chief executive of the bank asked the staff to brace themselves as a decision is expected to be taken soon on the matter. He said that whatever plans are implemented, the staff members should focus on the customers and not on speculations surrounding the bank. He wrote an email directly to around 400 senior staff and posted on the bank's intranet for its 120,000 employees around the world.

The government has an 82 per cent stake in the Royal Bank of Scotland and indicated that the bank might be split into a good bank and a bad bank with troubled assets. The bank had recorded a profit but was facing high level of toxic assets and the government officials have been looking for ways to revive the bank. The government had appointed investment bank Rothschild in July to conduct a review on whether the bank should be separated.

The UK treasury is seeking an approval from the European Union for its plans to split up the Royal Bank of Scotland (RBS) into separate entities. UK's Chancellor George Osborne had sought clearance in July for the plans to split bank.