Royal Bank of Scotland Group Plc (RBS,RBS.L) may reach an agreement enabling it to exit a U.K. government program that would insure its risky assets earlier than predicted, the Bloomberg reported on Saturday citing to person familiar with the situation.
The bank may no longer have to make an upfront 17.5 billion-pound, or $29 billion, outlay to join the government's Asset Protection Scheme, instead being allowed to pay for participation annually and agreeing to absord a bigger first loss than earlier decided, said the person. Royal Bank would insure as much as 280 billion pounds of risky assets through the program.
RBS is trying to get back on its feet after posting the biggest loss in British corporate history during the credit crunch. The company may be forced by the European Union to sell its insurance unit, 300 branches and some investment-banking assets to win approval for its plans.
A final decision on the terms of the asset-insurance plan hasn't been reached. RBS may agree to absorb a higher first loss under the program than the almost 43 billion pounds, including 23 billion pounds of writedowns since the credit crunch, that was originally made part of the deal. Even with the new agreement, the bank will probably take more than a year to exit the plan, the person said.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.