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With no bidders coming forward to take Citizens Bank – RBS’s U.S. arm – off its hands, RBS is spinning it off in an IPO.
With no bidders coming forward to take Citizens Bank – RBS’s U.S. arm – off its hands, RBS is spinning it off in an IPO.
(SANG TAN/AP)

The U.S. bank no one wants to buy

The U.S. economy is on the mend, financial regulators have almost completed their widespread crackdown and interest rates could soon start to rise. All of that should make U.S. banks look more attractive.

Not so for Citizens Financial Group Inc.

Over the past year, Citizens, Royal Bank of Scotland’s U.S. retail and commercial banking arm, has been trying to find a buyer because the U.K. government is fed up with RBS and wants to raise cash. Citizens has scoured the world over and talked to Canadian and Japanese banks, but no bid has emerged, according to the Financial Times, forcing the bank to proceed with option No. 2: an initial public offering.