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 Scottish independence: Ireland since 1919 is a lesson for Scotland in what a Yes vote means
- 2 Thailand deaths: Pair's bloodied bodies found naked on Koh Tao beach
- 3 Lego breaks out of the toy box and heads for the gallery
- 4 Vogue under fire for 'Big Booty' article
- 5 Julian Assange and Edward Snowden join piracy mogul Kim Dotcom’s political campaign in New Zealand
Thailand deaths: Pair's bloodied bodies found naked on Koh Tao beach
Russia freezes Ukraine into submission: Kiev admits country doesn't have enough fuel for winter
Jihadi John': MI5 may have identified Isis militant who killed David Haines but options limited
Scottish independence: Police will be on high alert on Friday whatever the result
David Haines beheading: David Cameron says Britain will hunt down Isis 'monsters' shown in video murdering aid worker
Daniele Watts: Django Unchained actress detained by Los Angeles police after being mistaken for a prostitute
The political class is doing what Hitler couldn’t – destroying Britain
Scottish independence: Nationalist leader Jim Sillars threatens pro-union companies with 'day of reckoning' after independence
Scottish independence: Yes campaign feels the heat as Alex Salmond's NHS claims come under furious attack
£23m Birmingham cycle scheme is attacked by Tory councillor for not catering to the elderly
Salmond accused of laughing off national debt with ‘what are they going to do: invade?’ joke
iJobs Money & Business
£280 - £320 per day: Ashdown Group: The Ashdown Group have been engaged by a l...
£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...
£35000 - £38000 per annum + Benefits: Ashdown Group: Training Coordinator / Pl...
Data Governance Manager (Solvency II) – Contract – Up to £450 daily rate, 6 month (may go Permanent)
£400 - £450 Per Day: Clearwater People Solutions Ltd: We are currently looking...