Not to be confused with Bank of Scotland. British banking and insurance holding company, based in Edinburgh, Scotland. Outside the UK, from 1988 to 2015 it owned Citizens Financial Group, the 13th ruffer investment trust fact sheet bank in the United States, and from 2004 to 2009 it was the second largest shareholder in the Bank of China, itself the world’s fifth largest bank by market capitalisation in February 2008.
In addition to its primary share listing on the LSE, the company is also listed on the New York Stock Exchange. For the history of the Royal Bank of Scotland before the holding company, see The Royal Bank of Scotland. By 1969, economic conditions were becoming more difficult for the banking sector. In response, the National Commercial Bank of Scotland merged with the Royal Bank of Scotland. The resulting company had 662 branches. During the late 1970s and early 1980s the Royal Bank was the subject of three separate takeover approaches.
In 1979, Lloyds Bank, which had previously built up a 16. Royal Bank, made a takeover approach for the remaining shares it did not own. The offer was rejected by the board of directors on the basis that it was detrimental to the bank’s operations. The first international office of the bank was opened in New York in 1960. Subsequent international banks were opened in Chicago, Los Angeles, Houston and Hong Kong. In 1988 the bank acquired Citizens Financial Group, a bank based in Rhode Island, United States.
The bank has since announced it would scale back its international presence. Our ambition is to be a bank for U. The late 1990s saw a new wave of consolidation in the financial services sector. In 1997, RBS formed a joint venture to set up Tesco Bank. On 11 February 2000, The Royal Bank of Scotland was declared the winner in the takeover battle, becoming the second largest banking group in the UK after HSBC Holdings. The Royal Bank of Scotland Group. A new international headquarters was built at Gogarburn on the outskirts of Edinburgh, and was opened by Queen Elizabeth II and Prince Philip, Duke of Edinburgh in 2005.
The Group was part of a consortium with Belgian bank Fortis and Spanish bank Banco Santander that acquired Dutch bank ABN AMRO on 10 October 2007. The bank also announced that it would review the possibility of divesting some of its subsidiaries to raise further funds, notably its insurance divisions Direct Line and Churchill. The aim was to “make available new tier 1 capital to UK banks and building societies to strengthen their resources permitting them to restructure their finances, while maintaining their support for the real economy, through the recapitalisation scheme which has been made available to eligible institutions”. Royal Bank of Scotland Group plc, Lloyds TSB and HBOS plc, to avert financial sector collapse. As a consequence of this rescue, the Chief Executive of the group, Fred Goodwin, offered his resignation and it was duly accepted. On 19 January 2009, the British Government announced a further injection of funds into the UK banking system in an attempt to restart personal and business lending.
This would involve the creation of a state-backed insurance scheme which would allow banks to insure against existing loans going into default, in an attempt to restore the banks’ confidence. At the same time the government announced its intention to convert the preference shares in RBS that it had acquired in October 2008 to ordinary shares. RBS’ contractual commitment to retain the 4. 31 December 2008, and the shares were sold on 14 January 2009.
Exchange rate fluctuations meant that RBS made no profit on the deal. Also in March 2009, RBS revealed that its traders had been involved in the purchase and sale of sub-prime securities under the supervision of Fred Goodwin. In December 2009, the RBS board revolted against the main shareholder, the British government. 5bn to staff in its investment arm. Unions were baffled that any bankers were getting bonuses, considering the bank is owned by the taxpayer. In October 2011, Moody’s downgraded the credit rating of 12 UK financial firms including RBS blaming financial weakness.
963,000 that would be held in long-term plans, and only paid out if he met strict and tough targets. If he failed to do this, it would be clawed-back. The Treasury permitted the payment because they feared the resignation of Hester and much of the board if the payment was vetoed by the government as the majority shareholder. In June 2012 a failure of an upgrade to payment processing software meant that a substantial proportion of customers could not transfer money to or from their accounts. RBS released a statement on 12 June 2013 that announced a transition in which CEO Stephen Hester will stand down in December 2013 for the financial institution “to return to private ownership by the end of 2014”.
The RBS stated that, as of the announcement, the search for Hester’s successor would commence. On 4 August 2015 the UK Government began the process of selling shares back to the private sector, reducing its ownership of ordinary shares from 61. 6bn as part of an assets sale to raise cash. 500m of tax by channelling billions of pounds through securitised assets in tax havens such as the Cayman Islands. On 29 March 2010, GE Capital acquired Royal Bank of Scotland’s factoring business in Germany. RBS Factoring GmbH, RBS’s factoring and invoice financing business in Germany, for an undisclosed amount.
The transaction is subject to a number of conditions, including regulatory approval. Due to pressure from the UK government to shut down risky operations and prepare for tougher international regulations, in January 2012 the bank announced it would cut another 4,450 jobs and close its loss-making cash equities, corporate broking, equity capital markets, and mergers and acquisitions businesses. The move brought the total number of jobs cut since the bank was bailed out in 2008 to 34,000. During 2012, RBS separated its insurance business from the main group to form the Direct Line Group, made up of several well-known brands including Direct Line and Churchill. European Commission ruled that the group sell a portion of its business, as the purchase was categorised as state aid.
In September 2013, the group confirmed it had reached an agreement to sell 314 branches to the Corsair consortium, made up of private equity firms and a number of institutional investors, including the Church Commissioners, which controls the property and investment assets of the Church of England. Glyn as a separate business, stating that the new bank could not survive independently. It revealed it would instead seek to sell the operation to another bank. In February 2017, HM Treasury suggested that the bank should abandon the plan to sell the operation, and instead focus on initiatives to boost competition within business banking in the United Kingdom. This plan was formally approved by the European Commission in September 2017.