Britain's PM Cameron says wants RBS to speed restructuring

MUMBAI Tue Feb 19, 2013 7:59am IST

The logo of the Royal Bank of Scotland is seen at an office in London February 6, 2013. REUTERS/Neil Hall

The logo of the Royal Bank of Scotland is seen at an office in London February 6, 2013.

Credit: Reuters/Neil Hall

Related Topics

Stocks

   

MUMBAI (Reuters) - British Prime Minister David Cameron says he wants state-controlled Royal Bank of Scotland (RBS.L) to speed up restructuring and has refused to rule out giving the government's share in the bank to the public.

The government owns 82 percent of RBS after pumping in 45 billion pounds of capital when the bank neared collapse in 2008.

Speaking in India during a trip aimed at drumming up trade and investment, Cameron made it clear he was keen to return the bank to private ownership as soon as possible and wanted it to step up its efforts to overhaul itself.

"It was a very badly damaged institution but I think they are doing the right thing but obviously we want them to, where possible, accelerate the adjustments that they are making in terms of making it a strong organisation," he said.

When asked to comment on reports the government was considering giving away its stake by 2015, Cameron said:

"These are all interesting questions for the future. The first job is to turn around the performance of RBS and to strengthen its balance sheet, strengthen its business and that's what (RBS Chief Executive) Stephen Hester and his team are doing.

"But I am keen to examine all possibilities for what we can do to put RBS in time back into the private sector."

In October, RBS said it was preparing to sell the shares in 2014, one year before the next general election, with the timing and sale structure up to the government. No share giveaway was mentioned.

Deputy Prime Minister Nick Clegg in 2011 backed proposals to give the public shares in part-nationalised banks because taxpayer money had been used to keep the banking system alive.

At the time, the Treasury said it would "look at all options", but critics dismissed the idea as a headline-grabbing exercise.

(Reporting By Andrew Osborn. Editing by Jeremy Gaunt.)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Rising Inflation

Rising Inflation

Food prices push inflation up, limit RBI's room to act.  Full Article 

New Direction

New Direction

New CEO Nadella pushes data culture at Microsoft.  Full Article 

Infosys Results

Infosys Results

Infosys says staff exodus a worry after Q4 profits beat estimates  Full Article 

Deal Talk

Deal Talk

Diageo in $1.9 billion bid to raise stake in United Spirits.  Full Article 

Reuters Poll

Reuters Poll

Domestic fund managers start to bet on own economy  Full Article 

S&P on India

S&P on India

India's policy reforms to affect sovereign ratings - S&P.  Full Article 

Toyota's Performance

Toyota's Performance

After two bumper years, Toyota braces for shift to slower growth.  Full Article 

Third Gender

Third Gender

Supreme Court recognises transgenders as third gender in landmark ruling.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage