Treasury forms top team to keep watch over Royal Bank of Scotland's £775m cash handout scheme

Oliver Gill
Follow Oliver
RBS' has previously warned it will not be able to meet European authorities' deadline on the of its Williams & Glyn arm (Source: Getty)

The Treasury is assembling a top team of lawyers and accountants to supervise an intricate Royal Bank of Scotland scheme to give away £775m in cash to its rivals.

The handouts are an attempt to pacify European authorities, frustrated after RBS said it won't be able to sell 300 of its Williams & Glyn branches by the end of the year.

The Williams & Glyn divestment was a condition attached to the European Commission sign-off of the UK government's £45bn bailout of RBS at the height of the financial crisis.

Challenger banks such as Virgin Money, Metro and TSB are in line for payouts of between £5m to £120m. More than half of funding from RBS will be allocated to boost banks' IT systems.

Read more: RBS boss slams "badmouthing" and denies deliberate destruction of firms

Whitehall sources said neither RBS nor the Treasury will have any ownership or control rights over the independent body that will have a watching brief over the process.

It is understood the independent body will be selected using a two-step process. Well-established independent institutions – such as the chartered accountant institutions and the Law Society – will propose individuals to sit on a nominations committee.

Once formed, the nominations committee will run a recruitment process to identify individuals to act as the directors of the independent body itself.

It is expected the panel will be finalised by the end of the year and cash handouts set to commence early next year.

The Treasury declined to comment.

Read more: Noel Edmonds claims publication of leaked FCA report would sink RBS

Related articles