London newspaper The Independent reported Friday that, bailed-out U.K. lender, Royal Bank of Scotland Group plc, wants to sell Charter One Financial Inc., the Cleveland-based bank that Providence, R.I.-based subsidiary Citizens Financial Group Inc. bought in 2004 for a hefty $10.5 billion to become one of the U.S. top 10 commercial banks and to extend its reach into the Midwest.
Also up for grabs, according to both The Independent and the Financial Times, are Asian assets that came with Royal Bank's disastrous €72 billion ($91 billion) consortium acquisition of ABN Amro Bank NV in late 2007.
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The disposals, if they happen, would represent the unwinding of two acquisitions that defined the reign of former Royal Bank CEO Fred Goodwin, whose hunger for acquisitions -- and willingness to dig deep -- contributed to the near-collapse of the bank had it not been for the U.K. government taking a 68% stake. Nonetheless, the possible disposals should not shock anyone following the bank's troubles since Goodwin's replacement Stephen Hester had said about disposals that everything is on the table, leading to speculation about the future of Citizens and Charter.
And the wait may be over next week as Hester has promised an update on potential asset sales with RBS' full-year results next Thursday, when the bank will likely announce the biggest loss in U.K. corporate history. Next week will also bring news on another major cause of Royal Bank's woes as the government announces the long-awaited terms of its "toxic" asset protection scheme, for which Hester has said his bank will be the "guinea pig." - Laura Board
See Dealscape: Capital One puts Chevy Chase, not Citizens, in its wallet
See Dealscape: RBS remains coy, and bidders quiet, about Citizens sale
