Royal Bank of Scotland was meant to return to private ownership within six years, according to the Bank of England policy makers arranging its bailout in 2008. The lender code-named 'Phoenix' has yet to rise from the ashes.
Bloomberg News reports that the U.K. central bank nicknamed RBS after the mythical bird during talks to prop up banks in the financial crisis, according to transcripts of meetings of the BOE’s Court of Directors from 2007 to 2009 published today.
The BOE said the government could own rescued banks for as long as six years, but that deadline passed in October, with taxpayers retaining 80% of RBS and 25% of Lloyds Banking Group.
The government has been unable to reduce its stake in RBS as the lender struggles to return to profitability, with 2013 marking its biggest annual loss since 2008.
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