RBS sale could be delayed because of misconduct charges

The U.K. government’s sale of Royal Bank of Scotland shares may be delayed until at least the end of the year because of increasing misconduct charges, Citigroup said.

Bloomberg News reports that the taxpayer-owned bank may take $5.6bn of charges for outstanding conduct and litigation issues this year, Andrew Coombs, an analyst at Citigroup with a sell rating on RBS, wrote in a note to clients on Friday. That may prompt the government to start selling its 78% stake at the end of 2015 at the earliest, Coombs wrote.

CEO Ross McEwan’s efforts to return the bank to profit by selling assets and cutting thousands of jobs have been hobbled by past misdemeanors. U.S. regulators have told RBS it could pay as much as $13bn if it loses a lawsuit over its handling of mortgage securities, although the ultimate value of the settlement may be much lower, according to Bloomberg Intelligence analyst Elliott Stein.

To access the complete Bloomberg News article hit the link below:

U.K. May Delay RBS Sale Over Misconduct Charges, Citigroup Says

BofA’s Gary Lynch Said to Be Stepping Down as Chief Lawyer

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