Into the good pot will go about three-quarters of the bank's existing activities, consisting mainly of its British and American banking operations, its insurance division and the less-dangerous bits of its investment bank, which is to be halved in size. Some tasty overseas businesses, for example in India, will be retained. The mediocre pot will contain the other foreign retail assets, which RBS will attempt to auction. But it will consist overwhelmingly of the dodgy bits of the investment bank (such as its leveraged-loan and property activities), which will probably be wound up over several years.
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