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| Version 1 | Version 2 |
|---|---|
| RBS nears toxic asset agreement | RBS nears toxic asset agreement |
| (10 minutes later) | |
| Royal Bank of Scotland has said it is close to an agreement with the Treasury about its participation in the government's asset protection scheme. | Royal Bank of Scotland has said it is close to an agreement with the Treasury about its participation in the government's asset protection scheme. |
| The bank, which is 70% state-owned, would buy an insurance policy from the government to cover future losses from some of its more toxic investments. | The bank, which is 70% state-owned, would buy an insurance policy from the government to cover future losses from some of its more toxic investments. |
| RBS will provide an update on the issue before its quarterly results on Friday. | RBS will provide an update on the issue before its quarterly results on Friday. |
| The Treasury and European Commission are also in talks about the terms surrounding state support for the bank. | The Treasury and European Commission are also in talks about the terms surrounding state support for the bank. |
| 'Recovery plan' | |
| RBS has warned that it may have to sell more of its businesses than originally planned to gain European approval for state support it has received since coming close to collapse last year. | RBS has warned that it may have to sell more of its businesses than originally planned to gain European approval for state support it has received since coming close to collapse last year. |
| RBS, which has reportedly been ordered to sell its Churchill and Direct Line insurance units and part of its investment banking business, said negotiations would "include some divestments not initially contemplated". | RBS, which has reportedly been ordered to sell its Churchill and Direct Line insurance units and part of its investment banking business, said negotiations would "include some divestments not initially contemplated". |
| "It remains RBS's goal that any required divestments do not threaten its recovery plan, which is already under way," the bank said. | "It remains RBS's goal that any required divestments do not threaten its recovery plan, which is already under way," the bank said. |
| In early trade in London on Monday shares in RBS were down by more than 12% at 36.81 pence. | |
| Lloyds move | Lloyds move |
| On Friday, the BBC reported that Lloyds Banking Group was set to end weeks of speculation by announcing it would not join the government's asset protection scheme. | On Friday, the BBC reported that Lloyds Banking Group was set to end weeks of speculation by announcing it would not join the government's asset protection scheme. |
| Lloyds believes it can survive without joining the scheme and is prepared to pay a fee of close to £2.5bn to avoid it, the BBC understands. | Lloyds believes it can survive without joining the scheme and is prepared to pay a fee of close to £2.5bn to avoid it, the BBC understands. |
| The banking group, 43% owned by the taxpayer, is thought to not want the additional government influence which comes with the scheme. | The banking group, 43% owned by the taxpayer, is thought to not want the additional government influence which comes with the scheme. |
| A decision on whether the arrangement goes ahead will be announced early this week, said the BBC's Nils Blythe. | A decision on whether the arrangement goes ahead will be announced early this week, said the BBC's Nils Blythe. |