RBS drops 5% after Osborne says break-up decision due 'in weeks'

Shares in the Royal Bank of Scotland have slumped in morning trading after Chancellor George Osborne said a break-up of the semi state-owned lender could take place "within weeks".

Osborne told the Daily Telegraph that the government, which owns 81% of the bank, is considering breaking it up into a "good bank" and a "bad bank". Though such plans have been speculated upon for years, Osborne spooked investors after stating a decision on the future of RBS is due within "two or three weeks". The news that major upheaval could be imminent sparked a sizeable sell-off this morning. Shares were down 4.8% or 17.9p, at 354.8p by mid-morning, though they remain up 26% on a 12-month view. The falls come despite gains for the wider index, with the FTSE 100 up 14.4 points,...