RBS’s Citizens Financial IPO ‘Signifies The End Of The Big Bank Model’, Says Expert
Sep 9, 2014
By Jake Mann, Benzinga Staff Writer. Yesterday, the Royal Bank of Scotland Group plc (LON: RBS) revealed more details about its upcoming spinoff. The IPO, which will center on RBS’s US retail banking arm Citizens Financial, is expected to raise upwards of at least $3 billion with a total market capitalization above $13 billion, according to The Wall Street Journal. Renaissance Capital reports this would make Citizens Financial the largest bank IPO in five years. Interestingly, not everybody is excited about RBS’s plans.
Ryan Mendy, COO of The Edge Consulting Group, says he believes they signify “the end of the ‘big bank model.” “This is the most logical way these institutions can boost overall performance for shareholders. We are already starting to see signs of movement within the large banks. Citigroup for example, has recently put its Japanese retail bank up for sale, and…