The RBS boss Ross McEwan has told ITV News that the bank has "established very good relationship with government". But he refused to deny that a 'good/bad' bank split was always a bargaining chip used by government to get RBS to do what it wanted.
In an interview to be broadcast on ITV News later, when Mr McEwan was asked about his relationship with Chancellor George Osborne, he said: "He and I seem to be getting on fine."
George Osborne has been talking today as if RBS is at the start of a significant transformation, but not much appears to have changed.
There will 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.