LONDON: Splitting up part-nationalised Royal Bank of Scotland will be put forward as an option by lawmakers examining standards within British banking, sources familiar with the matter told Reuters on Tuesday.
However, the Parliamentary Commission on Banking Standards is likely to stop short of making outright recommendations on the future of the bank when it publishes its final report later in June, commission sources have said.
Some members of the commission, notably former finance director Nigel Lawson, are known to support hiving off the bank's toxic assets into a "bad bank", enabling the "good bank" to build up capital so it can lend more.
Members of the Banking Standards Commission are currently reviewing a final draft of the 600-page report and will meet next Monday and Tuesday to debate its final recommendations. The report is expected to be published later in June.
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