LONDON – Britain's finance minister George Osborne said on Friday he wholeheartedly supported plans by Royal Bank of Scotland to create an internal bad bank to manage the run-down of its riskiest assets.
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"Under this new direction RBS will deal decisively with the problems of the past by separating out the good from the bad, and putting the bad loans in a bad bank," Osborne said in a statement.
The Treasury statement also said that taxpayers' exposure to the banking system had been reduced by 8 billion pounds ($12.85 billion)as a result of the structural changes.
(Reporting by William James; Editing by Steve Slater)