January 20, 2011 / 11:49 PM / 9 years ago

RBS in talks to exit asset protection scheme - FT

LONDON, Jan 20 (Reuters) - Royal Bank of Scotland (RBS.L) is in talks with the Treasury about ways in which the partly nationalised bank could leave the government’s asset protection scheme (APS) early, the Financial Times said on Thursday.

Two people involved in the discussions told the newspaper it was likely that the bank would leave the scheme by the end of this year instead of 2012, which RBS chief executive Stephen Hester has maintained is the earliest possible exit date.

As part of the state-backed scheme, the government has insured 282 billion pounds ($447 billion) of RBS’s bad debts.

One option considered was to spin off the APS portfolio into a separately capitalised entity, a “bad bank” with a government guarantee, people involved in the discussions told the FT.

Both the Treasury and RBS declined to comment on the report.

Reporting by Karolina Tagaris

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