A top U.K. Treasury official said Tuesday that splitting up state-controlled lender Royal Bank of Scotland into a 'good' and 'bad' bank hasn't been ruled out and there may come a time when officials would recommend such a move.
The Wall Street Journal reports that Nicholas Macpherson, permanent secretary to the treasury, told a panel of lawmakers that scrutinizes economic policy in the U.K. that proposals to split RBS into a good bank that can be sold to private investors and a bad bank stuffed with RBS's bad loans 'might be the right thing to do'.
In the meantime, Bloomberg reports that Citigroup must submit plans to the Federal Reserve that show how the bank has improved safeguards against money laundering.
Regulators ordered the New York-based company to explain procedures put in place to improve compliance with the Bank Secrecy Act and anti-money-laundering regulations, the Fed said today in a consent order.
Finally, Reuters reports that ICAP has said it expects its full-year revenues to fall 13%, after a recent pick-up in volumes failed to extend into March.
London-based ICAP said on Wednesday increased levels of volatility, including heavy electronic trading of the Japanese yen, had helped activity in January and February, but trading had tailed off this month.
Finally, the news agency reports that Italy's tax police searched the Milan offices of Japanese bank Nomura on Wednesday as part of a judicial investigation into Italian lender Monte dei Paschi di Siena, judicial sources said.
RBS Split Not Ruled Out (subscriber content)