Rothschild might be appointed as advisor for RBS breakup

Rothschild might be appointed as advisor for RBS breakupThe authorities in the UK might appoint Rothschild as an advisor on a proposal to break up the Royal Bank of Scotland Group, which is the largest state-owned lender in the country.

According to a media report that cited people closer to the matter, the appointment of Rothschild might be announced this week. Rothschild will begin a review of the bank and will conclude the process by September. The breakup will of the bank will allow the independent entities to adop steps to revive tis operations.

Chancellor George Osborne has said that the government is aiming to break up the Royal Bank of Scotland into separate entities. 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 Treasury is expected to choose asset valuation companies such as possibly BlackRock or Pacific Investment Management for reviewing RBS's loan book.