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.
Dennis Rodman will coach the North Korea basketball team
Jennifer Lawrence attacks mass media again over body image
Jennifer Lawrence: 'It should be illegal to call someone fat on TV'
Ian Watkins: Police probed over earlier allegations as paedophile Lostprophets singer sentenced to 35 years for child sex offences
Iain Duncan Smith leaves Commons food banks debate early
Paul Walker death caused by speed alone
Devyani Khobragade: India-US row escalates over arrest of diplomat in New York
- 1 America's 'virgin births'? One in 200 mothers 'became pregnant without having sex'
- 2 Sun will 'flip upside down' within weeks, says Nasa
- 3 Christmas comes early: Justin Bieber is 'retiring from music'
- 4 Iain Duncan Smith leaves Commons food banks debate early
- 5 Children evacuated from swimming pool after prosthetic leg mistaken for paedophile
- < Previous
- Next >
iJobs Money & Business
£500 - £550 per day: Cornwallis Elt : Business Analyst Target Operating Mod...
£500 - £680 per day: Harrington Starr: Murex Business Analyst - 1000 CHF per d...
£60000 - £75000 per annum + Bonus and Benefits: Harrington Starr: A leading au...
£25000 - £32000 per annum: Harrington Starr: Junior Business Analyst - Banking...