BoE governor: RBS situation 'a nonsense'

7 March 2013

Royal Bank of Scotland's (RBS) current situation of being state-owned is unsustainable and cannot go on for much longer.

That is the opinion of Sir Mervyn King, governor of the Bank of England (BoE), who believes the major British financier needs to be restructured sooner rather than later.

Indeed, while speaking to the Banking Standards Commission yesterday (6 March), Sir Mervyn - who will be replaced at the BoE by current Bank of Canada chief Mark Carney in June - claimed there are strong arguments for splitting the organization up.

"The whole idea of a bank being 82 per cent-owned by the taxpayer, run at arms' length from the government, is a nonsense. It cannot make any sense," the official stated.

Sir Mervyn went on to say it would be beneficial for all involved - RBS itself, the administration and the taxpayer - for the company to be re-privatized as quickly as possible after 4.5 years of it being a public body.

"This has dragged on unnecessarily long," he added.

By Gary Cooper

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