THE Treasury yesterday confirmed it has appointed investment giant BlackRock to advise on whether it should break up Royal Bank of Scotland.
BlackRock will provide specialist advice on RBS assets and joins investment bank Rothschild and law firm Slaughter & May as advisers on the review, which is expected to be completed by the autumn.
Chancellor George Osborne said in June that the UK government would examine whether to split the bank, hiving off its remaining toxic loans into a so-called “bad bank”.
Supporters of the proposal say that would leave the “good bank” better placed to lend and help stimulate the UK economy.
There has been speculation that BlackRock could gain around £1 million in fees, although it is thought that they would be paid by the bank rather than through public funds.
Meanwhile fund manager Invesco Perpetual yesterday denied a report that it was in talks to take a stake of up to 10 per cent in Lloyds.
The company said it had “no intention of buying a stake in Lloyds or any other UK focused high street bank at the current time”.