The Swiss division of Coutts, the private bank owned by Royal Bank of Scotland, is being investigated by German prosecutors over allegations that it helped wealthy clients to evade tax.
The disclosure, by the Dusseldorf state prosecutor, could drag RBS into the scandal engulfing HSBC’s Swiss bank and make it harder to complete its planned sale of Coutts’ international business.
RBS revealed details of the investigation as it announced a £3.5 billion loss for 2014 and confirmed that Sir Howard Davies, the former chief City regulator and chairman of the Airports Commission, will become its next chairman, taking over from Sir Philip Hampton on September 1.
The announcement was well received, with observers pointing to Sir Howard’s broad experience of business and politics, two areas