Royal Bank of Scotland says it won’t sell Citizens Bank as a condition of government rescue. There was speculation earlier in the week that European regulators might force RBS to auction the Rhode Island based retail bank. WNPR’s Harriet Jones reports.
RBS is one of several British banks that had to be rescued by the UK government in the recent financial crisis, and regulators are now dictating terms to the state owned bank. RBS says it will sell some branch networks in the UK, and will also sell its stake in Sempra Commodities – a Stamford based trading unit.
RBS bought the 51 percent stake in Sempra only in April of last year, and had agreed to maintain ownership through 2012. For Citizens meanwhile, the status quo will remain – CEO of Citizens Ellen Alemany, who also heads up RBS Americas, says Citizens is not among the assets up for sale, and she described the bank as a valued part of the RBS group.
Citizens Financial operates nearly 1,500 branches – 50 of them in Connecticut. It has about 23,000 employees.