Tim Mclaughlin reports in the Boston Business Journal that Citizens Bank could get a new owner if the European Commission forces parent company Royal Bank of Scotland to sell more assets than what executives originally anticipated.
RBS, whose shares fell as much as 13 percent Monday, said in a brief statement that negotiations with the EC will include some divestments not initially contemplated.
Recently, RBS deemed Citizens Financial Group as a core operation. The bank operates as Citizens Bank in Massachusetts, where it is the second largest retail bank with $22.2 billion in deposits, or 12 percent of the market as of June 30.
“The negotiations have sprung more leaks than a sieve recently, and the press seems widely agreed that RBS will have to divest its insurance operations, its RBS-branded branches in England, its NatWest-branded branches in Scotland and parts of its investment banking business,” analysts at CreditSights Inc. said in a Monday research note. “The main question surrounds its U.S. bank subsidiary, Citizens, which RBS is desperate to retain, but which might be in the (European Commission’s) sights.”