So there will indeed be no 'bad bank' - Mervyn King's demand to split and sell the bank we own has hit the buffers, once and for all is the idea. Instead more than £30 billion will be parcelled up internally, which will hit it by as much as £4-5 billion. The Treasury says it means the bank can finally move forward to being a 'boost' not a 'burden' to the economy.
But the rest of the detail about RBS this morning shows how far they have to go to get to anything like that.
The bank we own has this morning been slammed over its lending record - they have turned away too many people, failing its own targets and everyone elses's expectation. The boss says the 'bar has been higher' - in fact arguably their performance has been far lower.
If that wasn't enough, the good bits of the business have not been performing as well as they should either and RBS is warning it is on track to make a significant loss over the year, with a sharp fall in operating profits over the last quarters.
The economy may be turning around, but the bank we own is still far from recovering fully, five long years after it nearly went bust.