Royal Bank of Scotland shuts ‘bad bank’ that took £50bn hit

Move brings the curtain down on one of the biggest financial restructurings

RBS was among the first European banks to set up a unit to house its toxic assets after the financial crisis.

RBS was among the first European banks to set up a unit to house its toxic assets after the financial crisis.

Royal Bank of Scotland has closed the “bad bank” it created to handle a vast pile of toxic assets after the financial crisis nine years ago, having racked up cumulative losses of more than £50 billion (€56.76 billion) from the unit.

The move, announced in a memo to RBS staff on Thursday, brings the curtain down on one of the biggest financial restructurings – and shrunk by more than two-thirds what was once the biggest balance sheet of any bank in the world. 

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