July 12 (Bloomberg) -- The U.K. government hired BlackRock Inc. to assess the value of Royal Bank of Scotland Group Plc’s assets as the Treasury reviews a potential break-up of the bailed out British lender.
BlackRock Solutions will work with Rothschild and Slaughter & May LLP to help the government decide whether it should split up Edinburgh-based RBS, the Treasury said in a statement today.
Chancellor of the Exchequer George Osborne said last month he was “urgently” investigating the case for hiving off RBS’s toxic assets into a bad bank because the lender is weighed down by too many toxic assets.
The government still owns 81 percent of the lender almost five years after giving it a 45.5 billion-pound ($68.8 billion) bailout, the costliest in banking history. RBS shares still trade below the level at which taxpayers would break even on their investment.
In its “swift” review the Treasury will particularly examine RBS’s Ulster Bank and U.K. commercial property assets, Osborne said last month. The Chancellor said he will decide on the break-up in the autumn.
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