RBS names revamp specialist to oversee bad bank, flotations

Royal Bank of Scotland (RBS.L) has named Rory Cullinan, who led the drive to cut back the bank’s risky loans, to run its new “bad bank” and manage the stock market flotations for its U.S. bank Citizens and its William & Glyns network of branches. RBS, 82 percent-owned by the government, said Cullinan will lead its Capital Resolution Group (CRG), which will include the 38 billion pounds ($62 billion) of unwanted assets dubbed the bad bank, as well as the group’s shipping business and the operations due to be spun off. The internal bad bank was announced last month as part of measures to bolster RBS’s capital and speed up its eventual privatization. Cullinan, who had been expected to lead the bad bank, will oversee the sale of Citizens, which analysts have valued at between $9 billion and $15 billion.


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