RBS has struck a deal with the UK government that will enable it to break free from a state-backed asset insurance scheme, possibly within a year. In the latest twist in complex three-way negotiations between the bank, the UK Treasury and Brussels, RBS will no longer pay the upfront fee of up to £17.5bn for joining the asset protection scheme for five years but will agree to absorb the first £60bn of losses on assets insured by the scheme, rather than the first £19.5bn set in the original deal. The deal comes as the UK government prepares to unveil plans to break up the part-nationalised RBS and Lloyds.

This entry was posted by Gwen Robinson on Monday, November 2nd, 2009 at 4:56 and is filed under Capital markets. Tagged with Lloyds Banking Group, rbs. Edit this entry.