LONDON, Nov 22 (Reuters) - Britain's biggest banks would have to raise billions of pounds to achieve complete independence from state support, according to research from the Organisation for Economic Co-operation & Development.
To become standalone institutions, the banks would have to raise their core capital ratios above 20 percent, the Paris based group said in the Telegraph newspaper. Britain's banks are currently operating with ratios of 8-10 percent, the newspaper added. Last October the British government bailed out three banks - Royal Bank of Scotland, Lloyds TSB and HBOS - with a 37 billion-pound cash injection aimed at strengthening their capital reserves in the face of the credit crunch. RBS and Lloyds Banking Group, Britain's two largest retail banks, secured another 31 billion pounds ($50.5 billion) from the government on Tuesday and agreed to sell branches and key businesses to appease EU competition concerns over state aid. (Reporting by Michael Taylor; editing by Bernard Orr) Keywords: OECD/PICKUP
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NEW YORK, Nov 20 (Reuters) - Royal Bank of Scotland on Friday sold $7 billion of government-guaranteed notes in two parts, said IFR, a Thomson Reuters service.
The offering included $5 billion of floating-rate notes with a coupon rate of 26 basis points over the London Interbank Offer Rate. It also included $2 billion of 3-year fixed-rate notes priced to yield 80.5 basis points over comparable U.S. Treasuries, according to IFR. The lead manager on the sale was RBS.
(Reporting by Caryn Trokie; Editing by Dan Grebler) Keywords: ROYALBANK NOTES/SALE
(caryn.trokie@thomsonreuters.com ; + 1 646-223-6318; Reuters Messaging: caryn.trokie.reuters.com@reuters.net)
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NEW YORK, Nov 20 (Reuters) - Royal Bank of Scotland will sell $7 billion of debt in a two-part sale with the guarantee of the UK government, IFR reported.
The bank will sell $5 billion of 3-year floating-rate notes at a yield spread of three-month London Interbank Offer Rate plus 26 basis points, said IFR, a Thomson Reuters service. It will sell $2 billion of 3-year fixed-rate notes at mid-swaps plus 26 basis points. RBS is lead manager on the sale, expected to price later Friday.
(Reporting by Ciara Linnane; Editing by Theodore d'Afflisio) Keywords: RBS DEBT/SALE
(ciara.linnane@thomsonreuters.com; Tel: +1 646 223 6342; Reuters Messaging: ciara.linnane.reuters.com@reuters.net)
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US Markets closed Thursday for Thanksgiving which means Wednesday is a busy busy day for Economic news! Friday is a shortened trading day with low volumes as everyone has gone away!
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