RBS takes major step towards resuming dividends

The Royal Bank of Scotland has agreed a deal to scrap its Dividend Access Shares, bringing the resumption of dividend payments by the bank much closer.

The bank - which is 81% owned by the UK Government - yesterday agreed a deal with the Treasury to "retire" the special shares, according to reports. A stumbling block had been the European Commission which has been opposed to banks resuming dividend payouts while still receiving state-aid. But the bank said yesterday the Commission had signed off a deal allowing it to amend a state-aid agreement put in place at the time of its bail-out in 2008. The bank started talks with the Government over buying back and scrapping its Dividend Access Shares last month. Chancellor ‎George Osbo...