Is there a UK government bias towards the Royal Bank of Scotland?
The last few weeks have been dominated by the Royal Bank of Scotland, pension arrangements, write-offs and weakened balance sheets. The company has taken on board more taxpayer funding than any other company in the market and just yesterday there was an indication that Lloyds Bank was being denied access to immediate toxic asset insurance while the Royal Bank of Scotland deal has already been sealed. Is there a bias towards the Royal Bank of Scotland?
Rumours are abound in the market that for some reason the Royal Bank of Scotland is reportedly receiving more than its fair share of attention as others in the banking sector continued to fall. Lloyds Bank effectively did the UK government a massive favour in taking on the liabilities and business of HBOS but has apparently been "hung out to dry" while the Royal Bank of Scotland signs up to its toxic asset insurance plan. Official opinions and official explanations for the delay are conflicting which has led to severe concern in the UK stock market. Can there really be a Scottish bias towards the Royal Bank of Scotland?
While it may seem that way to some people in the market at the moment it is highly unlikely that the Royal Bank of Scotland is receiving seemingly focused attention to the detriment of others just because it is based in Scotland. Even although there is a forthcoming independence vote due next year in Scotland surely this can have nothing to do with the ongoing focus on this famous Scottish bank.
It seems inevitable that the Lloyds Bank deal will be completed next week and all talk of bias and undue attention should then disappear.
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