RBS 'to overhaul investment arm'

Taxpayer-backed Royal Bank of Scotland is reportedly preparing an overhaul of its investment banking arm which could put up to 5,000 jobs at risk.

RBS, which is 83% state-owned, has launched a review into its Global Banking and Markets decision amid falling revenues and mounting regulatory pressure, the Sunday Times said.



Draft proposals, which will be influenced by the final outcome of reforms including recommendations by the Independent Commission on Banking, would see European outposts cut out of the investment banking operation and focus placed on its British and US operations.



RBS earlier this year warned up to 2,000 jobs could go as it unveiled its exposure to Greek debt and provision to cover compensation for mis-sold payment protection insurance (PPI) tipped it to a half-year loss of £794 million.



However sources have told the Sunday Times that the latest plan would increase the number of jobs at risk significantly. RBS declined to comment.



Stock market turmoil and a lack of investment deals globally are hitting investment banks across the world.



Elsewhere, new capital rules, which require banks to hold larger cash buffers to protect against potential future crises, are making it harder for banks to generate the high returns investors demand.



Meanwhile, Wall Street banking giant Goldman Sachs will unveil a dismal set of third-quarter results on Tuesday, underlining the pressures the market turbulence has had on the sector.



JP Morgan Chase has already reported a 4% decline in profits, citing the recent volatility and eurozone debt crisis as the reason behind its drop in business.



The picture is much the same at Goldman Sachs, which has already announced thousands of job cuts and where revenues are expected to have fallen by about half (54%) to 4.93 billion US dollars (£3.1 billion) compared to the second quarter.



The impact of the ugly results is likely to trigger a slashing of bankers' bonuses, according to analysts, after the bank made a commitment to ensure no more than between 35% and 45% of revenue is paid to staff - a lower proportion than any other Wall Street bank.





Source: PA

Start your day with The Independent, sign up for daily news emails
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Customer Service Advisor

£15000 - £16000 per annum: Recruitment Genius: A Customer Service Advisor is r...

Ashdown Group: Trainee Consultant - Surrey / South West London

£22000 per annum + pension,bonus,career progression: Ashdown Group: An establi...

SThree: HR Benefits Manager

£40000 - £50000 per annum + pro rata: SThree: SThree Group have been well esta...

Recruitment Genius: Office Manager / Financial Services

£30000 - £37000 per annum: Recruitment Genius: Established in 1999, a highly r...

Day In a Page

The difference between America and Israel? There isn’t one

The difference between America and Israel? There isn’t one

Netanyahu knows he can get away with anything in America, says Robert Fisk
Families clubbing together to build their own affordable accommodation

Do It Yourself approach to securing a new house

Community land trusts marking a new trend for taking the initiative away from developers
Head of WWF UK: We didn’t send Cameron to the Arctic to see green ideas freeze

David Nussbaum: We didn’t send Cameron to the Arctic to see green ideas freeze

The head of WWF UK remains sanguine despite the Government’s failure to live up to its pledges on the environment
Author Kazuo Ishiguro on being inspired by shoot-outs and samurai

Author Kazuo Ishiguro on being inspired by shoot-outs and samurai

Set in a mythologised 5th-century Britain, ‘The Buried Giant’ is a strange beast
With money, corruption and drugs, this monk fears Buddhism in Thailand is a ‘poisoned fruit’

Money, corruption and drugs

The monk who fears Buddhism in Thailand is a ‘poisoned fruit’
America's first slavery museum established at Django Unchained plantation - 150 years after slavery outlawed

150 years after it was outlawed...

... America's first slavery museum is established in Louisiana
Kelly Clarkson: How I snubbed Simon Cowell and become a Grammy-winning superstar

Kelly Clarkson: How I snubbed Simon Cowell and become a Grammy-winning superstar

The first 'American Idol' winner on how she manages to remain her own woman – Jane Austen fascination and all
Tony Oursler on exploring our uneasy relationship with technology with his new show

You won't believe your eyes

Tony Oursler's new show explores our uneasy relationship with technology. He's one of a growing number of artists with that preoccupation
Ian Herbert: Peter Moores must go. He should never have been brought back to fail again

Moores must go. He should never have been brought back to fail again

The England coach leaves players to find solutions - which makes you wonder where he adds value, says Ian Herbert
War with Isis: Fears that the looming battle for Mosul will unleash 'a million refugees'

The battle for Mosul will unleash 'a million refugees'

Aid agencies prepare for vast exodus following planned Iraqi offensive against the Isis-held city, reports Patrick Cockburn
Yvette Cooper: We can't lose the election. There's too much on the line

Yvette Cooper: We can't lose the election. There's too much on the line

The shadow Home Secretary on fighting radical Islam, protecting children, and why anyone in Labour who's thinking beyond May must 'sort themselves out'
A bad week for the Greens: Leader Natalie Bennett's 'car crash' radio interview is followed by Brighton council's failure to set a budget due to infighting

It's not easy being Green

After a bad week in which its leader had a public meltdown and its only city council couldn't agree on a budget vote, what next for the alternative party? It's over to Caroline Lucas to find out
Gorillas nearly missed: BBC producers didn't want to broadcast Sir David Attenborough's famed Rwandan encounter

Gorillas nearly missed

BBC producers didn't want to broadcast Sir David Attenborough's famed Rwandan encounter
Downton Abbey effect sees impoverished Italian nobles inspired to open their doors to paying guests for up to €650 a night

The Downton Abbey effect

Impoverished Italian nobles are opening their doors to paying guests, inspired by the TV drama
China's wild panda numbers have increased by 17% since 2003, new census reveals

China's wild panda numbers on the up

New census reveals 17% since 2003