Article: United Kingdom : RBS risks investment bank sale in EC fight.

Byline: Mamta03

Royal Bank of Scotland may have to accept significant cutbacks in its investment banking division if the bank stands by its desire to keep US retail bank Citizens.

Selling Citizens, which has 26,000 employees, has emerged as one of Brussels' options for penalising RBS's receipt of state aid. Neelie Kroes, the EU competition commissioner, is understood to have taken RBS aback by the severity of her demands.

She has ordered the sale of the Churchill, Green Flag and Direct Line insurance businesses, more than 312 RBS branches in England, Global Merchant Acquiring, a card payments processing arm, and a reduction of the investment ...

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