RBS in new investment bank disposals
Thursday 05 January 2012
Royal Bank of Scotland took another step in the pruning of its once-proud investment banking empire yesterday after appointing Lazard to sell off chunks of the operation.
The state-owned bank is under political pressure to cut back on risky "casino" banking after an intervention by the Chancellor, George Osborne, in December.
Its chief executive Stephen Hester – who has already halved the size of its investment bank since taking over – has pledged that investment banking will account for no more than a third of RBS revenues in future.
Sources say businesses up for sale include the equity broking arms of Hoare Govett – bought with ABN Amro in 2007 – as well as other equity trading operations with RBS's global banking and markets division.
Equity broking was a lucrative business in the boom years, but the sector has been hammered by low trading volumes as well as a dramatic fall-off in merger and acquisitions and initial public offerings.
Overcapacity has seen a wave of consolidation, including Investec's £230m takeover of Evolution and Canaccord's £253m swoop for Collins Stewart.
Lazard and RBS both declined to comment.
- 1 Michelle Obama highlights harsh restrictions faced by Saudi women after meeting King Salman without wearing a headscarf
- 2 Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
- 3 Kim Kardashian on Bruce Jenner's 'story': 'We support him no matter what, and I think when the time is right, he'll talk'
- 4 Amal Clooney gives excellent response to fashion question at European Court of Human Rights
- 5 A bottle of wine a day is not bad for you and abstaining is worse than drinking, scientist claims
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Michelle Obama highlights harsh restrictions faced by Saudi women after meeting King Salman without wearing a headscarf
Amal Clooney gives excellent response to fashion question at European Court of Human Rights
Isis publicly behead man in Syrian town square for 'insulting Allah' as he screams for help
One spelling error costs Companies House up to £9 million after being sued for ruining business
9 reasons Greece's experiment with the radical left is doomed to failure
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
Greece elections: Syriza and EU on collision course after election win for left-wing party
British Muslim school children suffering a backlash of abuse following Paris attacks
British grandmother Lindsay Sandiford faces execution by firing squad in Indonesia
Liberal Democrat minister defends comments suggesting immigration causes pub closures
iJobs Money & Business
£13000 per annum: Recruitment Genius: This Pension Specialist was established ...
£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...
£25000 - £35000 per annum: Recruitment Genius: A Technical Report Writer is re...
Competitive salary & benefits!: MBDA UK Ltd: MBDA UK LTD Indirect Procurement...