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| Version 1 | Version 2 |
|---|---|
| RBS avoids being split into 'good' and 'bad' banks | RBS avoids being split into 'good' and 'bad' banks |
| (35 minutes later) | |
| Royal Bank of Scotland has said it will not split into separate so-called good and bad banks, and also announced a loss for the third quarter of the year. | Royal Bank of Scotland has said it will not split into separate so-called good and bad banks, and also announced a loss for the third quarter of the year. |
| RBS will create an internal "bad bank" ring-fencing £38bn of bad assets - such as loans it does not expect to have repaid. | RBS will create an internal "bad bank" ring-fencing £38bn of bad assets - such as loans it does not expect to have repaid. |
| The bank remains 81%-owned by the government following a massive bailout at the height of the financial crisis. | The bank remains 81%-owned by the government following a massive bailout at the height of the financial crisis. |
| RBS also announced a pre-tax loss of £634m for the third quarter. | RBS also announced a pre-tax loss of £634m for the third quarter. |
| Like its fellow banks, RBS has been caught up in the mis-selling of payment protection insurance (PPI). | |
| Its latest results state it has set aside another £250m to cover claims from individuals who were sold PPI cover they either did not need or did not qualify to use. | |
| Toxic | |
| Earlier this year, Chancellor George Osborne commissioned two City firms, Black Rock and Rothschild, to evaluate the case for splitting RBS in two. | Earlier this year, Chancellor George Osborne commissioned two City firms, Black Rock and Rothschild, to evaluate the case for splitting RBS in two. |
| The decision to keep the bad assets within the bank, but ring-fenced and managed separately, does not go that far. | The decision to keep the bad assets within the bank, but ring-fenced and managed separately, does not go that far. |
| It also goes against the advice of the Parliamentary Commission on Banking Standards, which suggested that toxic loans should be removed from RBS and kept in the public sector for the foreseeable future. | It also goes against the advice of the Parliamentary Commission on Banking Standards, which suggested that toxic loans should be removed from RBS and kept in the public sector for the foreseeable future. |
| Toxic loans - or assets - include loans and mortgages that are not expected to be repaid, as well as more complex investments related to these bad loans. | Toxic loans - or assets - include loans and mortgages that are not expected to be repaid, as well as more complex investments related to these bad loans. |