RBS in talks with govt to reinstate preference dividends

RBS could start paying dividends to preference shareholders again later this year, which could lead to a £400m capital raising.

The bank, which is mostly state-owned, would need to get approval from both the government and the Financial Services Authority to make the pay-outs. Negotiations are set to begin this week, The Telegraph reports. Under EU state aid rules, RBS has been prevented from paying any dividends for the last two years but the ban is lifted at the end of April. If RBS does not re-instate the dividend it will not be allowed to move forward with normal dividends to regular shareholders, the Telegraph reports. It also will not be allowed to buy out the government's dividend access share, which gi...