Look Who Gets To Smash RBS Into Little Pieces


The British are turning to a long-time collaborator to help handle their latest intractable issue.

The government has moved quickly to appoint advisers on the potential split of Royal Bank of Scotland into a good bank and bad bank, with Rothschild set to be named to run the assessment.

Rothschild’s role could be announced as soon as this week, said people close to the situation, after the investment bank saw off competition from Deutsche Bank and Bank of America Merrill Lynch at presentations last week….

Rothschild is expected to begin the study immediately with the aim of completing it by September, removing the uncertainty over RBS’s future structure as soon as possible….

The selection of Rothschild to run the RBS probe will raise eyebrows in some quarters, given that the key Treasury official responsible for the government’s bank investments was a Rothschild executive until a year ago.

John Kingman, who is understood to have recused himself from the decision awarding the mandate, was Rothschild’s head of financial institutions before returning to the Treasury as the department’s second most senior official last autumn.

Rothschild set to advise on split of RBS [FT]