Part-nationalised Royal Bank of Scotland has said it is to create an “internal bad bank”.<br /><br />That would hold 38 billion pounds (45 billion euros) worth of its riskiest assets – loans that are unlikely to be repaid and would eventually be written off. <br /><br />It is part of plans to sell the 81 percent of the bank that is held by the British government after RBS was bailed out with taxpayer money.<br /><br />The bank’s shares fell on Friday, and critics – including a major RBS investor – dismissed it as a “cosmetic exercise”.<br /><br />The privatisation is still a long way off if it happened now the UK government would be 14 billion pounds (16 billion euros) out of pocket.<br /><br />RBS is still losing money 634 million pounds (750 million euros) though the pace of losses is slowing.
