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Bank of England chief calls for RBS break-up

Wednesday, March 06, 2013 - 02:03

March.06 - The head of the Bank of England calls on the government to break up Royal Bank of Scotland so the state-backed lender can return to health and be sold to the private sector. (ROUGH CUT - NO REPORTER NARRATION)

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(ROUGH CUT - NO REPORTER NARRATION) The head of the Bank of England called on the government to break up Royal Bank of Scotland so the state-backed lender can return to health and be sold to the private sector. RBS needs to split off the bad assets on its books and build up capital at the remaining "good bank" so it can lend more, Mervyn King said on Wednesday, just weeks before the Bank becomes Britain's banking regulator. King also said it was "nonsense" that the government, which bailed out RBS during the 2008 financial crisis, did not have more direct control of the country's fourth-largest bank. "The whole idea of a bank being 82 percent owned by the taxpayer, run at arm's length from the government, is a nonsense," King told a parliamentary committee. "The arguments for restructuring sooner rather than later are powerful ones."

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Bank of England chief calls for RBS break-up

Wednesday, March 06, 2013 - 02:03