Government eyes RBS branches for nationalisation - reports

The government is considering nationalising the 316 Royal Bank of Scotland (RBS) branches currently up for sale with a view to creating a new business lender, the Sunday Times reports.

If no commercial buyer is found for the branches, UK Financial Investments - which controls the stakes in the part-nationalised lenders - said it would be set up as a standalone bank owned entirely by the taxpayer with the purpose of lending to small businesses. It would branded Williams & Glyn's, the name of a northern bank bought up by RBS 27 years ago. RBS is being forced to sell the 316 branches due to European state aid rules after accepting a government bailout during the financial crisis. Santander had been the preferred bidder for the branches, but pulled out last month. T...