RBS gets waiver from tough US banking rules
RBS, which has dramatically shrunk in size since needing a taxpayer bailout in 2008 that has left the government owning 80 per cent of the company, plans to reduce its US assets to below $50bn (£32.93bn) by the time the new rules come into force.
The rules will apply to all overseas banks with over $50bn of US assets. It will require firms such as Deutsche Bank and Barclays to set up separate US holding companies with strict capital and reporting requirements.
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Hide AdThe Fed said in a notice on its website that it had approved RBS’s request for a waiver from the requirement to form the US intermediate holding company by July 2016. The Fed did not give a reason for its decision.
RBS sold 29 per cent of its US bank Citizens in September and plans to cut its stake further this year.