RBS names the head of its ‘bad bank’

ROYAL Bank of Scotland said Rory Cullinan, the head of its non-core business, will have responsibility for managing the flotations of its US bank Citizens and a network of 314 branches being spun off.

RBS said Mr Cullinan will lead its new Capital Resolution Group, the so-called internal “bad bank” that includes £38bn of unwanted assets, which was announced last month.

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He had been expected to lead the “bad bank”.

RBS said Mr Cullinan will also have responsibility restructuring the bank’s shipping business and for managing the flotations of Williams & Glyns, a network of 314 branches earmarked for a listing in 2015 or 2016, and Citizens in the United States, which could occur next year.

Earlier this week, RBS cut itself free from an £8bn capital tie to the Government, following recent moves to strengthen its capital base. It was seen as another step along the road to eventual sale.