The write-down of goodwill would be because the
U.S. bank is not worth as much as RBS paid for it, and serves as
another reminder of the hefty price paid for past acquisitions
by former chief executive Fred Goodwin.
RBS, which is 80 percent owned by the UK government after being
rescued in 2008, sold 29 percent of Citizens Financial Group in
September and is expected to reduce its stake to about one-third
this year, which would see Citizens deconsolidated from RBS
Group.
The goodwill writedown is an accounting issue and will not
impact RBS's capital position. Indeed, the deconsolidation would
boost RBS's capital strength when it takes place.
(Editing by Simon Jessop)
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