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RBS Abandons Sale of Williams & Glyn Retail Bank

Royal Bank of Scotland shares surged Monday after the state-owned lender said that it's preparing to the abandon a plan to sell part of its retail unit

Royal Bank of Scotland (RBS) - Get Royal Bank of Scotland Group Plc Report  shares surged Monday after it said it may abandon a plan to sell part of its retail bank, Williams & Glyn, in favor of alternative options to meet its commitment to repay taxpayer aid given during the financial crisis.

RBS will take a £750 million ($920 million) exceptional charge when it reports fourth-quarter results on Thursday, the bank said, but will re-consolidate the retail operation back into its group results.

The alternative plan now under consideration will see RBS create a fund to support smaller rivals - so-called challenger banks - in their efforts to gain scale. In addition, it will create another independent fund that will invest in financial technology companies.

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