BoE chief calls for RBS to be split

AFP-JIJI

Bank of England Gov. Mervyn King said the British government should split the Royal Bank of Scotland into “good” and “bad” banking divisions to return it more quickly to the private sector.

King argued Wednesday that state-rescued RBS requires a “decisive restructuring” in comments before the Parliamentary Commission on Banking Standards, which was set up to report on professional standards and culture in Britain’s banks.

The head of Britain’s central bank told lawmakers that RBS was holding the wider economy back, and added it was “not beyond the wit of man” to split RBS into a “good” and “bad” bank to ensure it would aid recovery and boost lending.