socialmedian: Royal Bank of Scotland outlines revised APS terms

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Royal Bank of Scotland outlines revised APS terms

Source: Wall Street Journal

Nov 03, 2009

Summary

LONDON (MarketWatch) -- Royal Bank of Scotland said Tuesday that it will participate in the U.K. Government's Asset Protection Scheme on revised terms to those announced in February, reflecting progress at the firm and improvements in markets. Key terms include a reduction in the overall asset pool to 282 billion pounds, from 325 billion pounds, the first loss on the pool has been increased to 60 billion pounds, from 42.2 billion pounds. Also, the cost of APS cover will be paid for with an annual fee of 700 million pounds between 2009 and 2011, dropping to 500 million thereafter payable in cash or tax losses treated as Deferred Tax Assets or B shares. The Treasury will subscribe for the full 25.5 billion pounds announced in February in the form of B shares. RBS will divest the RBS branch network in England and Wales and the NatWest branches in Scotland and Direct SME customers across the U.K. It will also divest RBS Insurance, Global Merchant Services and RBS's interest in RBS Sempra Commodities.

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