The executives who are in charge of running the government owned Royal Bank of Scotland have come under severe criticism, for their failure to sell-off over three-hundred RBS branches, in order for the bank to adhere to European Union laws concerning government assistance for financial companies.
RBS had originally planned on selling the branches and turning them into offices of Williams and Glyn, which would then become a separate bank from RBS. However, costs related to this move are now approaching £2.5 billion and insiders have slammed the plan, as being one that was never going to work in the first place.
An article on the Herald Scotland Website disclosed more information on this news.
The criticism comes after the Edinburgh-based lender disclosed that the Treasury has submitted proposals to Brussels that would prevent the bank from having to sell the Williams & Glyn branch network – a condition of the bank’s £45bn bailout by the UK Government at the height of the financial crisis.
Those proposals would see Royal Bank of Scotland (RBS), led by Ross McEwan, spend £750 million on measures to boost competition for the UK banking sector.
This would come on top of the £1.8bn already spent on the failed bid to hive off the 300 branches as a separate and independent bank.
It means a total of £2.55bn will have been spent on the Williams & Glyn project – if the Treasury’s proposals are accepted by the European Commission.
The latest costs associated with the venture will heap further pressure on the RBS management, who are expected to report a ninth consecutive loss when its latest annual results are announced on Friday.