Rothschild role in RBS split plan

THE Treasury yesterday confirmed the appointment of blue-chip investment bank Rothschild to advise on the potential break-up of Royal Bank of Scotland.

Officials said Rothschild would provide financial advice on the case for transferring RBS’s remaining toxic loans into a so-called “bad bank”, leaving a safer RBS “good bank” to lend to UK businesses and households.

City law firm Slaughter & May has been appointed to provide legal advice on such a split, which has the backing of the likes of recently departed Bank of England governor Sir Mervyn King and former Tory Chancellor Lord Lawson.

The Treasury said more external adviserswould be appointed in the coming weeks.