Royal Bank of Scotland shares surged Monday after the state-owned lender said that it's preparing to the abandon a plan to sell part of its retail unit
Royal Bank of Scotland (RBS) shares surged Monday after it said it may abandon a plan to sell part of its retail bank, Williams & Glyn, in favor of alternative options to meet its commitment to repay taxpayer aid given during the financial crisis.
RBS will take a £750 million ($920 million) exceptional charge when it reports fourth-quarter results on Thursday, the bank said, but will re-consolidate the retail operation back into its group results.
The alternative plan now under consideration will see RBS create a fund to support smaller rivals - so-called challenger banks - in their efforts to gain scale. In addition, it will create another independent fund that will invest in financial technology companies.
Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.
Despite the president's promise of no stimulus until after Nov. 3, there are no signs yet that this is the sort of correlated selling that leads to a deep correction.
Breaking down an approach to the long side of this biotech stock.
Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation.
If you have questions, please contact us here.
Email
Email sent
Thank you, your email to has been sent successfully.
