* Slaughter & May to offer legal advice
* Review to be completed by the autumn
By Matt Scuffham
LONDON, July 3 Britain's finance ministry has
appointed investment bank Rothschild to advise on the
potential break-up of part-nationalised Royal Bank of Scotland
Finance Minister George Osborne said in June that Britain
would examine whether to split the bank up, after acknowledging
a sale of the government's 81 percent stake in the bank remained
a long way off.
The Treasury said on Wednesday Rothschild would provide
financial advice on the case for transferring RBS's remaining
toxic loans into a so-called "bad bank". Slaughter & May will
provide legal advice in the review, which is expected to be
completed by the autumn.
Rothschild will receive 850,000 pounds ($1.3 million) for
its advice, a source familiar with the matter said, a cost that
could be picked up by RBS. Details of the contract will be
published in the next three weeks.
RBS and Rothschild declined to comment.
The Treasury said more external advisors, including those
specialising in asset valuation, would be appointed in coming
RBS, still lumbered with toxic loans from a boom-era
property binge in the UK and Ireland and buffeted by its role in
a global interest rate-fixing scandal, remains a thorn in the
side of the government and the wider economy.
In his annual address to London's financial elite, Osborne
said RBS probably should have been split into a good bank and
its soured assets hived off into a bad bank in 2008, when the
lender was close to collapse.
Osborne also signaled the government's intention to start
selling shares in Lloyds Banking Group.