RBS reaches accord with UK gov't to leave emergency insurance program
October 18, 2012, 12:06 am TWN
LONDON -- Royal Bank of Scotland (RBS), which was rescued in Britain's biggest bank bailout, says it is getting out of an emergency insurance program which helped stabilize the company after it nearly collapsed.
RBS said Wednesday that it has agreed with the government that it will leave the Asset Protection Scheme, in which the bank paid 2.5 billion pounds (US$4 billion) to insure against losses on 282 billion pounds of bad loans and other risky assets.
Chief Executive Stephen Hester said the development was “a significant milestone” in the bank's recovery.