RBS 2013 Annual Report Download - page 498
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Notes on the consolidated accounts
496
42 Post balance sheet events
RBS Capital Resolution
In November 2013, the Group announced the creation of RBS Capital
Resolution (RCR), to manage a pool of assets with particularly high long
term capital intensity and/or potentially volatile outcomes in stressed
environments. RCR became operational on 1 January 2014 with a
portfolio of £29 billion assets.
Sale of selected Chicago-area operations of RBS Citizens
On 7 January 2014, the Group announced that RBS Citizens Financial
Group, Inc. had reached agreement to sell its Chicago-area retail
branches, small business operations and select middle market
relationships in the Chicago market to U.S. Bank National Association, a
subsidiary of U.S. Bancorp. The sale includes 94 Charter One branches
in the Chicago area, $5.3 billion in local deposits and $1.1 billion in locally
originated loans for a deposit premium of approximately $315 million, or 6
percent of deposits. The transaction is subject to regulatory approval and
is anticipated to close in mid-2014.
Disposal of Structured Retail Investor Products and Equity
Derivatives Businesses
On 19 February 2014, the Group announced that it had reached
agreement with BNP Paribas S.A. for the disposal of assets and liabilities
related to its structured retail investor products and equity derivatives
businesses, and associated market-making activities. The disposal is
subject to competition approval and will be implemented on a phased
basis during 2014 and 2015. The consideration is not material.
Strategic review
In November 2013, the Group announced that it was undertaking a
comprehensive business review of its customer-facing businesses, IT
and operations and organisational and decision making structures.
As described on page 8, the Group has announced the results of its
Strategic review, resulting in it being realigned into three businesses:
Personal & Business Banking, Commercial & Private Banking, and
Corporate & institutional Banking. In addition, the Group will be
rationalising and simplifying its systems, based on a target architecture
with improved resilience.
Direct Line Insurance Group (DLG)
On 26 February 2014 RBS announced that it had entered into a placing
agreement to complete the sale of its residual interest in DLG (except for
4.2 million shares held to satisfy long term incentive plan awards granted
by RBS to DLG management). Accordingly, on settlement of the placing,
the Group will have completed the disposal as required by the European
Commission.
Other than as detailed above, there have been no significant events
between 31 December 2013 and the date of approval of these accounts
which would require a change to or additional disclosure in the accounts.