RBS Management looking to longer term
Despite the fact that Royal Bank of Scotland, soon-to-be 84% owned by UK taxpayers, was the largest bank in the world just two years ago, the company has seen an amazing about turn in its fortunes. Even just a few months ago the UK government had been suggesting the current 70% stake in the operation could be sold to a third party in the short-term and allow taxpayers to reduce their the liability, and also cash in their investment.
However, after yesterday's disastrous figures which showed a £2.2 billion loss for the three months to the end of September the government and the management of Royal Bank of Scotland are now "looking to the long term". This is serious U-turn from the more upbeat statement we saw just a few weeks ago from the UK government and is primarily the result of EU Commission meddling in the situation.
While on the surface the UK government and UK regulators are showing a united front with the EU commission there is dismay behind-the-scenes at the flexing of muscles seen from Brussels. This meddling from the EU will only get worse in the short to medium term as more and more power is handed over to a central, unelected, EU commission.
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